Price Trends

According to the commodity market analysis system of SunSirs, the domestic market for color coated steel coils continued its weak consolidation trend last week; overall prices fluctuated downward, and market trading activity remained subdued. Upstream hot-rolled substrate prices faced downward pressure and retreated, thereby weakening cost-side support. Compounding this, the recovery in demand from downstream industries fell short of expectations; consequently, end-users largely adopted a "buy-on-demand" strategy, resulting in limited overall transaction volume. Traders slowed the pace of their shipments, and some merchants offered slight price concessions to facilitate inventory reduction. Market participants maintained a strong wait-and-see stance, and price differentials across mainstream product specifications gradually became more pronounced. On May 18, the market price for color coated steel coils stood at 6,500 RMB/ton; by May 22, the price remained at 6,500 RMB/ton—representing a 1.562% increase compared to two weeks prior, but a 2.005% decline compared to the same period last year.

Analysis and Commentary

Galvanized Sheet: Last week, prices for galvanized sheets experienced a slight decline. As of Friday (May 22), the price stood at 4,220 RMB/ton—a decrease of 0.588% compared to the previous week and 0.165% compared to the same period last year. Downstream demand within the coated and plated steel market remained lackluster, resulting in sluggish market transaction volumes.

Cost Side: Substrate Weakened, Cost Support Softened

Last week, market prices for hot-rolled substrates continued to trend downward; steel mills offered price concessions to facilitate shipments, directly driving down production costs for color coated sheets and coils. Meanwhile, zinc ingot prices fluctuated within a narrow range, while the prices of chemical auxiliaries—such as paints and resins—remained stable, showing no significant upward pressure. Overall, the cost side lacks strong support; consequently, its role in underpinning the prices of color coated sheets and coils has weakened, leaving room for market prices to decline.

Supply Side: Stable Production, Slight Inventory Accumulation

Last week, operating rates at major domestic color coated steel manufacturers remained stable, with production capacity being utilized normally and production schedules arranged strictly according to incoming orders. Small and medium-sized processing plants flexibly adjusted their production pace in response to orders, ensuring that overall supply remained ample. While inventory levels within steel mills remained generally manageable, stocks in the circulation sector saw a slight accumulation—driven by sluggish market transactions—leading to increased pressure on merchants to offload their goods.

Demand Side: Downstream Sectors Remained Weak; Procurement Driven Primarily by Essential Needs

Demand recovery in downstream sectors—such as building envelopes, home appliances, and steel structures—remained sluggish. End-user enterprises faced a shortage of orders, and their procurement activities were largely limited to restocking for immediate, essential needs, with little inclination to make bulk purchases. The pace of commencement for outdoor infrastructure projects remained slow, providing only limited stimulus to the market for color coated steel coils; consequently, overall demand lacks sufficient momentum to provide a significant boost to market prices.

Market Outlook

In summary, prices for color coated steel sheets sit at the median level for the year. While prices may continue to rise in the short term, the extent of any further increase is likely to be limited.

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