Price trend

According to the SunSirs Commodity Market Analysis System, prices for color coated steel sheets remained stable this week. On March 9, the market price stood at 6,350 RMB/ton; by March 13, the price remained unchanged at 6,350 RMB/ton. While prices held steady compared to the previous week, they represent a decline of 7.299% compared to the same period last year.

Analysis and Commentary

Galvanized Sheet: This week, prices for galvanized sheet experienced a slight decline. As of Saturday (February 28), the price stood at 4,045 RMB/ton—down 0.172% from the previous week and 9.243% year-on-year. Downstream demand within the coated and plated steel market remained lackluster, resulting in sluggish market transaction volumes.

This week, the supply of the five major steel product categories totaled 8.2097 million tons, representing a week-on-week increase of 3%; total inventory for these five categories stood at 19.7489 million tons, up 1.2% from the previous week; and weekly consumption for these five categories reached 7.9808 million tons—a week-on-week surge of 15.4%—with consumption of construction materials rising by 55.2% and plate products by 3.6%.

Supply, Demand, and Inventory

Supply: Steel mills have accelerated the resumption of production, and capacity utilization rates are rebounding. Ex-factory prices remain largely stable, reflecting a strong willingness to hold prices firm.

Demand: Downstream sectors—including steel structures, home appliances, and curtain walls—are resuming operations slowly. End-users are primarily making small, on-demand purchases; bulk transaction volumes remain insufficient, and the recovery during this peak season has fallen short of expectations.

Inventory: According to Mysteel monitoring, social inventories across 17 major cities nationwide stand at 254,600 tons—a week-on-week decrease of 9,600 tons. Inventory destocking remains sluggish, and overall levels remain relatively high.

Costs and Drivers

Raw Materials: Cold rolled and hot rolled coils are trending with a slight upward bias; zinc and aluminum ingots are trading at elevated levels, bolstered by geopolitical factors and supply expectations, while cost-side support remains resilient.

Futures: "Ferrous series" futures are fluctuating within a narrow range, offering weak guidance to the spot market, which is currently driven primarily by spot-specific fundamentals.

Exports: Overseas demand remains stable, providing only limited support to the domestic market through export orders.

Market Outlook:

From March 16 to March 20, the market for color coated steel sheets is expected to fluctuate within a narrow range, remaining generally stable but with a slight downward bias. Cost support remains in place; however, the pace of demand recovery will determine the potential for upside movement. If downstream production accelerates and inventory continues to be depleted, prices may edge upward slightly; conversely, if trading activity remains sluggish, further localized price softening cannot be ruled out.

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