Price trend

According to the SunSirs Commodity Market Analysis System, prices for color coated steel sheets rose slightly this week. On March 16, the market price stood at 6,400 RMB/ton; by March 20, the price remained at 6,400 RMB/ton. This represents an increase of 0.787% compared to last week, while marking a decline of 5.882% compared to the same period last year.

Analysis and Commentary

Galvanized Sheet: Prices for galvanized sheet edged upward this week. As of Friday (March 20), the price stood at 4,124 RMB/ton—an increase of 1.95% compared to last week, yet a decline of 6.907% year-on-year. Downstream demand within the coated and plated steel market remained lackluster, resulting in sluggish trading activity.

This week, the supply of the five major steel product categories totaled 8.3982 million tons—a week-on-week increase of 188,500 tons, or 2.3%. Total inventory stood at 19.4623 million tons, representing a week-on-week decrease of 286,600 tons, or 1.5%. Apparent consumption reached 8.6828 million tons, an increase of 8.8% compared to the previous week.

Supply, Demand, and Inventory

Overall, in the short term, the market for color coated steel sheets is expected to continue benefiting from three key factors: cost support, low inventory levels, and recovering demand. Prices are likely to maintain a stable-to-firm trend, with a low probability of a significant decline.

From a cost perspective, upstream raw material prices remain elevated, and steel mills' price adjustment policies have taken effect, resulting in continued cost support for the market. Regarding inventory, social inventories remain in a destocking phase; traders are cautious in their restocking efforts, keeping inventory pressure limited. On the demand side, the resumption of downstream construction projects is accelerating, and essential purchasing demand is expected to continue flowing into the market, thereby underpinning transaction volumes. However, it should be noted that current market demand remains driven primarily by essential needs; downstream customers have limited tolerance for high prices, and there is insufficient momentum to sustain significant price surges. Consequently, the market is expected to maintain a pattern of narrow fluctuations with a slightly bullish bias.

Market outlook

For the upcoming week (March 23–29), mainstream prices in the domestic color coated sheet market are expected to remain stable, with potential for slight upward adjustments in select regions; market transaction volumes are projected to maintain a steady trend. Traders are advised to replenish inventory on an as-needed basis and maintain prudent inventory levels; downstream enterprises should procure according to demand and consider locking in long-term orders during price dips to mitigate the risks associated with minor price fluctuations. Moving forward, key factors to monitor include trends in upstream raw material prices, steel mills' ex-factory pricing policies, and the progress of work resumption for downstream construction projects.

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