Price trends:

According to the commodity market analysis system of SunSirs, the price of color coated steel sheets has stabilized this month. The market price of color coated steel sheets was 6,350 RMB/ton on February 1st and remained at 6,350 RMB/ton on February 28th. The average price of color coated steel sheets this month has stabilized compared to the beginning of the month, and was down 7.299% compared to the same period last year.

Galvanized Sheet: The price of galvanized sheet fell slightly this month. On February 1st, the price was 4,055 RMB/ton, and on February 28th, it was 4045 RMB/ton, a decrease of 0.246% compared to the beginning of the month and a decrease of 9.243% compared to the same period last year. Downstream demand in the coated steel market remained lukewarm, and market transactions were sluggish.

Market analysis

Inventory situation: Social inventory continued to accumulate, with the East China region facing the greatest pressure.

Inventory pressure has become the core contradiction in the current market. As of February 27, the total national inventory of color coated steel coils reached 487,100 tons, an increase of 40,100 tons from the previous week. Among them, steel mill inventory was 222,400 tons, an increase of 35,000 tons; social inventory was 264,700 tons, an increase of 5,200 tons. In terms of regional distribution, East China saw the most significant increase in inventory, with color coated steel coil inventory increasing by 2,400 tons, accounting for nearly half of the national increase in social inventory, reflecting the prominent supply-demand imbalance in this region.

Raw materials and costs: Cost support was weak, and futures prices were trending downwards.

On the raw material side, hot rolled coil futures traded with a slightly weaker bias last week, while Tangshan cold rolled base material prices fluctuated between 3,110-3,140 RMB/ton, a week-on-week decrease of 20 RMB/ton, further weakening cost support. Coupled with record-high inventories in the North China market before the Spring Festival (Tianjin galvanized steel inventory reached 131,500 tons), the supply-demand imbalance intensified, and market expectations for a strong start to the year failed to materialize. Merchants adopted a cautious approach, prioritizing inventory reduction and cash recovery.

Market Outlook: The market is expected to consolidate weakly in the short term; attention should be paid to the pace of demand release

In summary, as of February 28th, the color coated steel coil market was under triple pressure: supply recovery outpacing demand, passive inventory accumulation, and weakening cost support, resulting in a lack of upward price momentum. In the short term, the market is expected to continue its weak consolidation pattern in early March: on the one hand, downstream demand may gradually pick up after the Lantern Festival (January 15th of the lunar calendar), but the speed of this recovery remains to be seen; on the other hand, increased capacity utilization at steel mills will exacerbate supply pressure, and if inventory reduction falls short of expectations, prices still face downward risks. It is recommended that businesses closely monitor futures market movements and the pace of end-user resumption of work, flexibly adjust their sales strategies, and mitigate the risk of inventory depreciation.

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