Price Trends: Predominantly stable throughout the month, with slight regional divergence

According to the commodity market analysis system of SunSirs, the domestic market for color coated steel sheets this month generally exhibited a trend of initial stability followed by weakness, characterized by volatile downward movement throughout the month; consequently, the central price level shifted slightly lower compared to the beginning of the month. Upstream raw material costs—specifically hot-rolled steel—underwent fluctuating adjustments, while downstream industries entered their traditional off-season for demand. As the imbalance between supply and demand became increasingly pronounced, overall market trading remained sluggish; merchants demonstrated a stronger inclination to offload inventory than to stockpile, and the market as a whole lacked any significant upward momentum, leading to a further widening of regional price differentials. On May 1, the market price for color coated sheets stood at 6,333 RMB/ton; by May 29, the price had reached 6,500 RMB/ton. For the month, the average price of color coated sheets rose by 2.636% compared to the price at the start of the month, yet declined by 2.005% compared to the same period last year.

Galvanized Sheet: This month, prices for galvanized sheets rose initially before trending downward. On May 1, the price stood at 4,195 RMB/ton; by May 29, it had reached 4,210 RMB/ton—representing an increase of 0.357% compared to the beginning of the month and 1.519% compared to the same period last year. Downstream demand within the coated and plated sheet market remained lackluster, resulting in sluggish market trading activity.

Analysis of Cost-Side Performance

1. Substrate Costs: This month, prices for hot-rolled coils—the primary substrate material—generally trended downward with some volatility. Prices held relatively steady at the beginning of the month; however, from the mid-to-late period, increased shipment pressure from steel mills caused prices to soften continuously. Prices for galvanized substrates followed suit with synchronous downward adjustments, directly lowering the production costs of color coated sheets and exerting significant downward pressure on their market prices.

2. Chemical Auxiliaries: Prices for chemical auxiliaries—such as polyester paints, curing agents, and topcoats—remained generally stable, exhibiting only minor localized fluctuations. There were no instances of significant unilateral price surges or crashes; consequently, the impact of these auxiliaries on the overall cost of color coated sheets was limited, with the core driver of cost changes this month centering squarely on substrate prices.

3. Comprehensive Production Costs: The comprehensive production costs for steel mills declined in tandem with the weakening trend in hot-rolled steel prices. Compounded by intensifying market competition, profit margins for steel mills narrowed. To secure orders, some enterprises resorted to offering "hidden discounts" (undisclosed price concessions), a practice that further contributed to the weakening of spot market prices.

Supply-Side Performance

1. Operating rates at major mainstream color coated steel enterprises remain at moderately high levels; with few scheduled maintenance plans, overall market supply is ample, and resource availability is abundant.

2. Small and medium-sized processing plants are flexibly adjusting their production schedules based on their specific order volumes; while operating rates have declined slightly at some plants facing insufficient orders, the impact on overall market supply remains limited.

3. Market inventories continue to show an upward trend, with both mill-side and social inventories recording slight increases. Inventory pressure is particularly pronounced in the East and North China regions, and the pace at which traders are destocking remains slow.

Industry Performance on the Demand Side

1. Steel structures and building roofing are being impacted by hot and rainy weather, hindering the progress of outdoor construction projects. Consequently, the commencement of infrastructure, factory construction, and roof renovation projects has slowed down. Procurement activities are currently driven primarily by immediate, sporadic restocking needs; the willingness to build up large-scale inventories remains low, and overall demand continues to weaken on a month-over-month basis.

2. The home appliance sector has entered its traditional off-season. Shipments of finished products—such as air conditioners and refrigerators—have been lackluster. Downstream manufacturers are adopting an on-demand procurement strategy, resulting in few bulk orders and insufficient support for the demand for high-end color coated steel sheets.

3. Regarding the export market, the recovery in overseas demand has fallen short of expectations, and the volume of new foreign trade orders remains limited. Compounded by exchange rate fluctuations and intensifying competition in overseas markets, export price quotations lack a competitive edge. Consequently, some resources originally intended for export are being diverted to the domestic market, thereby exacerbating competitive pressures within the country.

Market Outlook: Barring significant fluctuations in input costs, mainstream prices for color coated sheets are unlikely to experience major swings in either direction; instead, minor fluctuations are expected to prevail.

In summary, current 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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