Last week, futures prices for hot rolled coils saw a significant upward trend, while domestic spot market prices for galvanized steel coils rose with some fluctuation; prices in a few markets remained stable. According to the SunSirs commodity market analysis system, as of August 28, the average domestic market price for galvanized steel coils stood at 4,140.00 RMB/ton, marking a slight increase of 0.49% compared to the week before last.

Fundamentals: Driven by the continued strength of the futures market last week, downstream buyers and traders showed increased interest in making inquiries; trading volumes saw a moderate rise compared to the previous week, with low-priced stock moving smoothly and the overall pace of shipments accelerating. Meanwhile, steel mills generally raised their new settlement prices at month-end, passively driving up procurement costs for traders and further squeezing profit margins, which strengthened the merchants' resolve to hold firm on prices. Regarding inventory, social stockpiles continued to decline slightly, though levels remain high on a year-on-year basis.

According to the latest data from SunSirs, the overall operating rate for galvanized sheet production last week stood at 89%. The capacity utilization rate was 65.36%, down 0.35% from the week before last. Weekly production was 1.1546 million tonnes, a decrease of 6,100 tonnes from the previous week. Steel mill inventories stood at 677,500 tonnes (down 3,100 tonnes from the week before last), while social inventories were 1.5812 million tonnes (down 21,400 tonnes from the week before last); total inventories amounted to 2.2587 million tonnes, a decrease of 24,500 tonnes from the week before last.

Regarding market sentiment, although prices have strengthened recently, the pace of inventory reduction remains sluggish; furthermore, with September approaching and the pressure to clear stock mounting, traders generally hold a pessimistic outlook.

Industry Update: Industry Online has released its latest production scheduling report for the three major categories of white goods. The combined production schedule for air conditioners, refrigerators, and washing machines for September 2026 totals 27.21 million units, a 4.0% decrease compared to actual production figures from the same period last year. By product category, the production schedule for residential air conditioners stands at 9.75 million units (down 7.7%); refrigerators at 8.52 million units; and washing machines at 8.94 million units (down 1.2%).

Market outlook

Some producers of galvanized sheet and coil report that, while they are inclined to raise ex-factory prices due to the sharp rise in the cost of hot rolled coil feedstock, actual market support remains weak—compounded by already sluggish demand for galvanized products. Consequently, SunSirs anticipates that prices for galvanized sheet and coil will likely remain stable in the short term.

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