SunSirs: The Rise in the Futures Market Boosted Confidence, and the Galvanized Sheet and Coil Market Slightly Followed Suit

Price trend

Last week, the trend of hot rolled coil futures market first suppressed and then rose. In the early part of the week, the futures market fluctuated weakly, and the price of galvanized sheet spot market slightly fell. In the later part of the week, stimulated by macro positive news, the futures market rose, boosting market confidence and increasing trading sentiment. The price of galvanized sheet spot market actively followed suit. According to the Commodity Market Analysis System of SunSirs, as of July 4th, the average price of galvanized sheet and coil in the domestic market was 4,085.00 RMB/ton, a slight increase of 0.06% compared to the beginning of the week.

Fundamentals:

As of July 4th, the formation stage of supply and demand fundamentals was at the bottom, and the market had limited room for further decline. Macro news boosted, and futures had a more obvious driving force; At the same time, the supply had weakened, and there was not much pressure on resource supply. In addition, the price difference between hot-dip galvanizing was relatively small, resulting in a significant increase in the spot price of galvanized sheet coils. According to the latest data obtained by SunSirs, the overall production rate of galvanized sheet last week was 81.29%; The capacity utilization rate was 62.9%, a decrease of 0.02% from last week’s previous week; The weekly output was 897,200 tons, a decrease of 0.02 million tons from last week’s previous week.

During this cycle, the inventory fluctuated, and the prices of spot galvanized sheet coil market merchants fluctuated. Market merchants mainly focused on shipping and destocking, and the overall market demand performance was average. As of July 4th, the inventory of steel mills across the country was 469,400 tons, an increase of 18,00 tons from last week’s previous week; Social inventory was 1.0733 million tons, an increase of 7,900 tons from last week’s previous week; The total inventory was 1.5427 million tons, an increase of 9,700 tons from last week’s previous week.

Industry News: From June 1st to 30th, the retail sales of passenger cars in China reached 2.032 million units, a year-on-year increase of 15% and a month on month increase of 5%; The retail sales of new energy vehicles in the national passenger car market reached 1.071 million units, a year-on-year increase of 25% and a month on month increase of 4%.

Market outlook

Overall, it is difficult to see substantial improvement in terminal demand in the short term, and market sentiment may fluctuate. SunSirs expects that the price of galvanized steel and coil will continue to fluctuate narrowly in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.