Price trend
According to the Commodity Market Analysis System of SunSirs, the price of color coated sheet has slightly decreased this month. On March 1st, the market price of color coated sheets was 6,900 RMB/ton; On March 31st, the price was 6,750 RMB/ton. The average price of color coated sheet this month decreased by 2.17% compared to the beginning of the month, and increased by 2.8% compared to the same period last year.
Analysis review
Galvanized sheet: The price of galvanized sheet has slightly decreased this month, starting to decline at the beginning of the month, stabilizing in the middle and late of the month, and rebounding at the end of the month. On March 1st, the price of galvanized sheet was 4,457 RMB/ton, and on March 31st, the price of galvanized sheet was 4,430 RMB/ton, a decrease of 0.6% compared to the beginning of the month and a decrease of 12.05% compared to the same period last year. The downstream demand in the coating market was lukewarm, and market transactions were relatively weak.
Market outlook
Affected by weak terminal demand and expectations of crude steel production restrictions, the decline in raw material prices was greater than that of finished products, and the profit margin of steel mills has improved. In March, the immediate profit of Jiangsu thread increased by 68 RMB/ton to 85 RMB/ton compared to February. The recovery of profits has prompted steel mills to accelerate their resumption of production. Mysteel data showed that at the end of March, the daily production of molten iron in 247 steel mills rebounded to 2.37 million tons, an increase of 68,000 tons from the beginning of March.
Steel supply is expected to remain high or even further increase in April. The daily output of molten iron from 247 steel mills has rebounded from 2.3 million tons in early March to 2.37 million tons at the end of the month, approaching the market's widely recognized critical value of 2.35 million tons for supply-demand balance. According to Mysteel's top note data, the daily average output in April may rise to 2.39 million tons, and the high output level is still continuing.
Considering the arrival of the off-season, although most factories' costs continued to rise, their shipping mentality continued, and their offers remained strong at high levels. This month, most domestic facilities have started operating normally, but production and sales have not yet balanced, and inventory was accumulating. It is expected that the price of color coated sheets will remain stable in the short term.
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