Price trend:

Last week, hot rolled coil futures fluctuated, and spot galvanized steel sheet and coil prices remained stable with a downward trend. According to SunSirs' commodity market analysis system, as of January 9th, the average price of galvanized steel sheets and coils in the domestic market was 4,065.00 RMB/ton, a slight decrease of 0.55% compared to the beginning of the week.

In the early part of the week, hot rolled coil futures prices fluctuated upwards, effectively boosting market sentiment, leading to increased inquiries and stimulating some speculative and pre-emptive restocking demand. Transactions at lower prices were relatively good. However, end-user purchasing demand was entering a seasonal and trend-based downward phase, and overall market transactions did not meet expectations. Towards the end of the week, as futures prices weakened, merchants focused on maintaining stable sales and accelerating cash collection.

Fundamentals: According to the latest data from SunSirs, the overall operating rate of galvanized steel sheets last week was 79.25%; the capacity utilization rate was 65.44%, a decrease of 0.63% compared to last week; the weekly output was 933,400 tons, a decrease of 9,000 tons compared to the week before last; steel mill inventory was 479,000 tons, a decrease of 8,300 tons compared to lthe week before last; social inventory was 1,245,800 tons, an increase of 8,600 tons compared to the week before last; and total inventory was 1,724,800 tons, an increase of 300 tons compared to the week before last.

Although inventories decreased slightly, steel mills experienced weak end-user orders in January, indicating insufficient direct demand from key sectors such as the automotive industry.

In terms of market sentiment, the market participants were generally taking a cautious wait-and-see approach regarding future market trends, and their operations were mainly focused on selling off inventory.

Regarding steel mills, Baosteel released its pricing policy for February and March futures last week.  February order prices remained largely unchanged, while prices for cold-rolled, galvanized, and color-coated steel products for March orders were all increased by 100 RMB/ton.

Industry Trends: The China Passenger Car Association (CPCA) preliminarily estimates that in December 2025, national passenger car manufacturers will wholesale 1.57 million new energy vehicles, a year-on-year increase of 4% and a month-on-month decrease of 8%. The cumulative wholesale volume of new energy passenger vehicles in 2025 is expected to reach 15.33 million units, a year-on-year increase of 25%.

Market Outlook

Market sentiment remains cautious, and trading will focus more on actual orders and shipments.  SunSirs expects limited upward price momentum in the short term, and attention should be paid to adjustments in steel mill production plans and the rate of destocking in the market.

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