Price trend

Last week, the futures market fluctuated, while the spot galvanized sheet and coil market saw prices remain stable with a slight downward trend, with merchants primarily focused on selling off inventory. According to the SunSirs commodity market analysis system, as of November 21, the average price of galvanized sheet and coil in the domestic market was 4,147.50 RMB/ton, a slight decrease of 0.06% compared to the beginning of the week.

Market Analysis

Fundamentals: At the beginning of the week, some demand was released ahead of schedule due to market stimuli, leading to a weakening of purchasing momentum later in the week. Transaction prices remained at a normal to low level in the latter part of the week, with overall purchasing mainly based on immediate needs. Transaction volume showed little fluctuation compared to the previous week. According to the latest data from SunSirs, the overall operating rate of galvanized sheets this week was 78.57%; the capacity utilization rate was 64.05%, an increase of 1.10% from the previous week; and the weekly output was 913,500 tons, an increase of 15,700 tons from the previous week.

Regarding inventory: Although the inventory of galvanized sheets and coils in the market showed a slow downward trend recently, the absolute level was still higher than the same period in previous years, and overall inventory pressure continued. It is reported that last week, steel mill inventory was 508,400 tons, an increase of 900 tons from the week before last; social inventory was 1,319,900 tons, a decrease of 11,200 tons from the week before last; and total inventory was 1,828,300 tons, a decrease of 10,300 tons from the week before last.

On the steel mill side, major steel mills in Shanghai had introduced settlement policies, with the settlement price for galvanized sheets and coils at 4,030 RMB/ton, a slight easing compared to the previous period.

Industry Updates: From November 1st to 16th, the national passenger vehicle market retail sales reached 886,000 units, a 14% decrease compared to the same period last November and a 6% decrease compared to the same period last month. The cumulative retail sales since the beginning of the year reached 20.142 million units, a 7% increase year-on-year.

Market Forecast:

Overall, demand for galvanized sheets and coils was weak, and merchants in the three major markets were facing significant inventory pressure. SunSirs predicts that galvanized sheet and coil prices will likely remain weak and stable in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.