Price trend

According to the commodity market analysis system of SunSirs, the domestic color coated sheet market last week exhibited a trend characterized by overall stability with slight weakness, yet demonstrated strong resistance to price declines; price fluctuations were limited, and the market performed more robustly compared to other coated products such as galvanized sheets. The market price stood at 6,466 RMB/ton on June 22 and remained at 6,466 RMB/ton on June 26, marking a 0.248% increase compared to the week prior to that and a 1.282% decrease year-on-year.

Analysis and Commentary 

Galvanized Sheet: Prices for galvanized sheet saw a slight decline last week; as of Friday (June 26), the price stood at 4,167 RMB/ton, down 0.548% from the week before last but up 2.082% year-on-year. Downstream demand in the coated sheet market remained tepid, resulting in sluggish trading activity.

Key Market Analysis

1. Price Trends: Overall Stability with Some Flexibility in Negotiations

Last week, spot market quotes for color coated sheets remained generally stable; mainstream prices in key cities across the country showed no significant downward movement, making it the most resilient product within the coated steel segment. However, actual market transactions involved "hidden" price concessions; traders expanded the scope for negotiation to accelerate month-end capital recovery and clear inventory, leading to a gradual increase in the availability of low-priced stock.

Breaking it down by phase: the market maintained its earlier stability at the start of the week, with quotes remaining relatively firm; mid-week, market sentiment softened slightly due to weakening raw material prices; towards the month's end, a "wait-and-see" attitude among end-users intensified, and small-to-medium-sized merchants in some regions faced increased pressure to move stock, leading to more promotional price concessions. Nevertheless, official public quotes did not see sharp declines, highlighting the product's price resilience. In contrast to the widespread price drops seen in galvanized sheets—a related product—color coated sheets benefited from specific, inelastic demand, resulting in market performance that clearly outperformed other coated steel categories.

2. Supply Side: High-Level Capacity Utilization and Ample Supply

Last week, the upstream supply of domestic color coated sheets remained generally ample, with industry operating rates holding at high levels. Supplies of upstream cold-rolled base materials were plentiful; major steel mills conducted minimal maintenance, and rolling lines operated steadily without any instances of concentrated shutdowns or production curbs, resulting in robust overall capacity utilization.

While inventory pressure at steel mills remained manageable, the pressure of month-end settlements became pronounced. Some private steel mills showed a diminished willingness to hold firm on prices and a greater desire to boost sales volume through price concessions. Market supplies were abundant—particularly from key production regions like North China—exerting downward pressure on market prices. Meanwhile, the industry's overall capacity utilization rate remained at a relatively high level for the year, with no significant expectation of a supply-side contraction in the short term.

3. Demand Side: Sluggish Demand During Off-Season; Only Structural "Must-Have" Demand Remains

Last week fell within the industry's traditional off-season for consumption; compounded by widespread high temperatures and rainy weather across the country, overall end-user demand remained weak, and market trading was generally subdued. Downstream sectors—such as home appliances, prefabricated construction, and steel structures—showed little willingness to stock up; end-user enterprises adopted a "wait-and-see" approach anticipating price drops, with virtually no large-scale restocking activity.

Demand exhibited distinct structural divergence: while large-volume bulk purchasing was absent, sporadic "must-have" demand existed for specialized projects—such as outdoor roofing and cladding—serving as the key factor supporting the firm prices of color coated sheets. Intermediaries were extremely cautious in their purchasing, largely opting for a strategy of frequent, small-batch restocking based on immediate needs, resulting in a generally lackluster trading atmosphere.

4. Raw Materials and Futures: Weak Cost Support and Bearish Market Sentiment

Regarding raw materials, prices for "ferrous" raw materials continued to soften last week. Prices for base materials such as hot-rolled and cold-rolled coils retreated slightly, squeezing profit margins for coated products; this weakened cost support for color coated sheets and exerted underlying downward pressure on market prices.

Futures market performance was lackluster; after an intraday spike, futures prices for ferrous coils and sheets steadily declined, remaining range-bound at low levels. This weighed on sentiment in the spot market, intensified the "wait-and-see" attitude among downstream end-users, and stifled upward momentum in prices.

Core market logic

Last week, the market for color coated sheets was defined by a tug-of-war between weak off-season demand and cost-side support. On one hand, the combination of the traditional off-season and adverse weather dampened end-user demand; sluggish trading and high pressure to move inventory capped any upward movement in prices. On the other hand, essential demand provided a floor, supply showed no significant surplus, and cost support prevented a sharp decline; consequently, color coated sheets outperformed related products like galvanized sheets, maintaining an overall pattern of narrow, slightly bearish fluctuation.

Market outlook

In the short term, the color coated sheet market is unlikely to see any significant upward or downward trends; instead, it will likely continue to operate within a narrow, slightly weak range, characterized by stability and minor fluctuations. On the cost side, there is currently no momentum for sharp price swings, so costs will continue to provide a floor for prices, limiting the scope for steep declines. However, end-user demand is unlikely to rebound quickly during the off-season; the prevailing pattern of a "wait-and-see" approach and purchasing strictly on an as-needed basis will persist, leaving the market without a driving force for price increases.

In summary, current prices for color coated sheets are at a median level relative to the past year; while prices could rise in the short term, the probability of such an increase is relatively low.

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