Price Trends

According to the commodity market analysis system of SunSirs, the domestic market for color coated steel sheets this week generally exhibited a pattern of narrow fluctuations—remaining relatively stable yet trending slightly downward—while the pace of actual transactions showed distinct divergence. Cost support from upstream raw materials faced intermittent disruptions, while downstream end-user demand remained generally weak. Consequently, traders demonstrated a strong inclination to offload inventory, and a pervasive "wait-and-see" sentiment dominated the market; overall price fluctuations remained limited in magnitude, though regional price spreads widened slightly. On May 25, the market price for color coated sheets stood at 6,500 RMB/ton; by May 29, the price remained unchanged at 6,500 RMB/ton. Compared to the previous week, prices trended toward stability, though they represented a decline of 2.005% compared to the same period last year.

Market Analysis

Galvanized Sheet: Prices for galvanized sheets experienced a slight decline this week. As of Friday (May 29), the price stood at 4,215 RMB/ton—down 0.118% from the previous week, yet up 1.639% compared to the same period last year. Downstream demand within the coated and plated steel market remained lackluster, resulting in sluggish market transaction volumes.

Raw Material Cost Analysis

1. Hot-rolled Substrates: This week, prices for hot-rolled coils remained stable initially before experiencing a slight decline. Steel mills marginally lowered their ex-factory quotes, while trading activity in the spot market remained sluggish. Consequently, the overall cost-side support for color coated sheets has weakened somewhat, thereby dampening the momentum for price increases in the color coated sheet market.

2. Chemical Auxiliaries: Prices for auxiliary materials—such as polyester paints and galvanized substrates—remained stable, exhibiting only minor fluctuations without any significant upward or downward trends. The overall cost of these auxiliaries has had a limited impact on the production costs of color coated sheets; the primary cost-side influence remains centered on hot-rolled substrates.

3. Steel Mill Production Costs: With a reduction in scheduled maintenance, overall operating rates at steel mills have remained at moderately high levels. Fluctuations in raw material markets have led to a slight decrease in production costs, and steel mills are gradually beginning to face increased pressure to move their inventory.

Supply-Side Situation

1. Operating rates at major color coated sheet manufacturers remain stable; meanwhile, some small and medium-sized mills are flexibly adjusting production levels in response to their order volumes. Overall market supply is ample, and inventories are gradually accumulating.

2. Steel mills' production schedules are currently focused primarily on fulfilling existing orders, as the volume of new orders remains insufficient. To accelerate inventory reduction, some mills are engaging in "hidden price cuts"—offering undisclosed discounts on bulk orders—leading to a gradual influx of lower-priced materials into the market.

3. Regional disparities are pronounced: in the East and North China regions—where production capacity is highly concentrated—competition for shipments has intensified, resulting in relatively lower price levels. Conversely, in South China, prices demonstrate greater resilience against decline, bolstered by logistical support and robust regional demand.

Demand-Side Performance

1. Downstream Steel Structure Sector: The commencement pace of infrastructure and plant renovation projects remains moderate. Procurement driven by immediate necessity continues to follow a "buy-to-replenish" pattern; there is little inclination for large-scale stockpiling, with most purchases being made strictly on an as-needed basis.

2. Home Appliance and Metal Roofing Sectors: Characteristics typical of the traditional off-season are evident. Orders within the home appliance industry are sluggish, while roofing projects—hindered by weather conditions—have seen their construction pace slow down; consequently, overall procurement volumes have experienced a slight month-on-month decline.

3. Export Market: There has been no significant rebound in overseas demand, and the volume of new foreign trade orders remains limited. Domestic export quotations for color coated steel sheets have held steady; however, the influx of certain low-priced materials is impacting the domestic market, thereby further intensifying competition within the domestic sales sector.

Market outlook: Barring significant fluctuations in input costs, mainstream prices for color coated sheets are unlikely to experience major swings, with minor fluctuations expected to predominate.

Current prices for color coated steel sheets sit at the median level for the year. In the short term, prices may continue to rise, though any further increases are expected to be limited.

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