Price trend

According to the SunSirs Commodity Market Analysis System, prices for color coated steel sheets remained stable last week. On March 23, the market price stood at 6,333 RMB/ton; by March 27, the price remained unchanged at 6,333 RMB/ton. Compared to the week prior, prices held steady, though they marked a decline of 6.867% compared to the same period last year..

Market analysis

Galvanized Sheet: Last week, prices for galvanized sheets rose slightly before trending downward. On Friday (March 23), the price stood at 4,132 RMB/ton—an increase of 0.193% compared to the week prior, but a decline of 6.726% year-on-year. Downstream demand within the coated and plated steel market remained lackluster, resulting in sluggish market transaction volumes.

Last week, the supply of the five major steel product categories totaled 8.3958 million tons, representing a slight week-on-week decline. Total inventory decreased, with construction materials inventory falling by 358,200 tons and plate materials inventory by 125,700 tons. Weekly consumption stood at 8.8797 million tons; specifically, consumption of construction materials rose by 8.4% week-on-week, while consumption of plate materials declined by 0.9%.

Supply, Demand, and Transaction Volume: Stable with a Downward Bias; Driven Primarily by Essential Demand

Supply: Steel mill operating rates remained stable, with production capacity being released in an orderly manner; there were no instances of concentrated production cuts or expansions, resulting in a balance between supply and demand.

Transactions: Downstream sectors (construction, steel structures, and home appliances) were primarily engaging in small-scale, on-demand purchasing; large-volume orders were scarce, and overall trading activity remained sluggish.

Inventory: Social inventories were rising gradually; turnover remained normal, with no significant pressure.

Exports: The trend of "stable domestic demand and robust external demand" continued, positioning exports as the primary channel for inventory reduction; meanwhile, amidst mounting overseas anti-dumping pressures, enterprises were accelerating the relocation of production capacity abroad.

Costs and Support: Hot Rolled Coil Remained Firm; Downside Potential Was Limited

Raw Materials: Hot rolled coil prices remained at elevated levels; cold rolled base material was priced between 3,090 and 3,120 RMB/ton, providing strong support from the cost side.

Profit Margins: The price spread between color coated steel and hot rolled coil stood at approximately 1,300 RMB/ton; steel mills were maintaining satisfactory profitability and showed little inclination to lower prices.

Market Outlook

Pricing: Stable with underlying support; significant price fluctuations are unlikely.

Demand: Gradually recovering as construction projects resume; inventory pressure is slowly easing.

Strategy: For immediate requirements, replenish inventory on an as-needed basis; for large-volume orders, it is advisable to lock in spot prices while monitoring steel mill price adjustments and hot rolled coil futures.

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