SunSirs: Market Inventory Increased Slightly, and Galvanized Sheet Prices Fluctuated

Price trend

Last week, hot rolled coil futures prices fluctuated, while spot galvanized sheet and coil prices remained stable and rose. Market participants primarily focused on reducing inventory by shipping, resulting in overall shipments falling short of expectations. Due to the fluctuating futures market and weak demand, the spot market lacked sufficient support for high prices. Once futures prices fall, the spot market will quickly adjust. According to the SunSirs’ Commodity Market Analysis System, as of August 8, the average price of domestic galvanized sheet and coil was 4,320.00 RMB/ton, a slight increase of 0.76% from the beginning of the week.

Analysis review

Fundamentals: This week, galvanized sheet and coil capacity utilization saw a slight rebound. With rising galvanized sheet and coil prices, particularly at state-owned steel mills, manufacturers were increasingly motivated. According to the latest data from SunSirs, the overall operating rate for galvanized sheet and coil was 80.27% last week; capacity utilization was 63.77%, up 0.29% from the previous week; and weekly output was 909,600 tons, an increase of 4,100 tons from the previous week.

As of August 8, traders were primarily adopting a strategy of buying on dips, primarily to fill shortages of available grades, and overall inventory levels remained normal. According to the latest data from SunSirs, as of August 8th, mill inventories of galvanized sheet and coil stood at 455,400 tons, an increase of 8,300 tons from the previous week. Social galvanized inventory stood at 1,093,100 tons, a 12,800-ton increase, bringing total inventory to 1,548,600 tons, a 21,100-ton increase.

Regarding market sentiment, it is understood that with frequent adjustments in futures prices and volatile spot market prices, traders were generally adopting a cautious wait-and-see approach.

Industry News: In July, the national passenger car market sold 1.826 million units, a year-on-year increase of 6.3% and a month-on-month decrease of 12.4%. Year-to-date, cumulative sales have reached 12.728 million units, a year-on-year increase of 10.1%. This year, the cumulative growth rate of domestic auto retail sales has continued to rise, from 1.2% in January-February to 10.8% in January-June. July saw a slowdown from a high base, marking a shift from a low-initial, high-mid, and flat-line market trend. July sales increased by 3% compared to the historical peak of 1.768 million units in July 2023, demonstrating a positive growth momentum.

Data from the General Administration of Customs on August 7, 2025 showed that China exported 376.10 million household appliances in July 2025; the cumulative exports from January to July were 258.9617 million units, a year-on-year increase of 2.2%.

Future outlook:

Overall, traders are strongly willing to maintain prices due to the upward trend in cold rolled steel settlement prices and the support of raw material costs. SunSirs predicts that galvanized sheet and coil prices will continue to fluctuate within a narrow range in the short term.

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