SunSirs: The Downstream Demand Was Weak, and the Price of Galvanized Sheets and Coils Fell Slightly

Price trend

In July, ferrous metal prices surged, boosted by anti-involution policies, and galvanized sheet and coil prices followed suit. However, as the policy boost gradually weakened in August, infrastructure and real estate remained weak, coupled with the impact of extreme weather, which weakened actual demand, leading to a decline in galvanized sheet prices. According to the SunSirs Commodity Market Analysis System, as of August 29, the average domestic galvanized sheet and coil price was 4,252,500 RMB/ton, down 1.05% from the beginning of the month.

Factors influencing price fluctuations:

Market merchants generally faced little pressure

On the supply side, galvanized sheet and coil capacity utilization saw a slight rebound in the first half of this month. With rising galvanized sheet and coil prices, particularly at state-owned steel mills, manufacturers were increasingly motivated. In the second half of the month, galvanized sheet and coil capacity utilization declined slightly, but the reduction was relatively limited. Supply remained relatively high, and manufacturers primarily opted to ship to recover capital. As of August 29th, according to incomplete statistics, the overall operating rate of galvanized sheet enterprises nationwide was 78.91%, with capacity utilization at 63.14%, down 1.09% from the previous week. Weekly production was 900,600 tons, down 15,600 tons from the previous week. Steel mill inventories were 457,000 tons, down 7,700 tons from the previous week.

In August, spot market inventories of galvanized sheet and coil continued to rise. This was primarily due to the upward trend in spot prices in July, which led many traders to believe that there was still room for further gains. This strong ordering attitude has led to a recent increase in market arrivals. However, overall demand in August was weak, and market inventories continued to accumulate. As of August 29th, according to incomplete statistics, the social inventory of galvanized sheet and coil in key cities monitored in China was 1.3789 million tons, a weekly increase of 29,000 tons and a monthly increase of 106,400 tons.

Downstream demand was general

Looking at August, with the market still in the off-season, weak end-user consumption, and a slowdown in construction due to hot weather, the average daily trading volume of galvanized sheet and coil is expected to decline. As of August 21, the average daily trading volume of galvanized sheet and coil in August was 16,376 tons, a decrease from July.

Looking at demand for galvanized sheet for the three major home appliances -air conditioners, refrigerators, and washing machines - in recent years, the overall total volume in July is consistent with seasonal trends. However, due to increased rain and high temperatures, order volumes fell short of expectations, indicating a seasonal decline. In July 2025, galvanized sheet demand for air conditioners, refrigerators, and washing machines is projected to reach 411,900 tons, 13,600 tons, and 36,000 tons, reflecting a month-over-month decline. In August, the projected monthly demand for galvanized sheet for home appliances was 549,500 tons, slightly above the 2024 monthly average of 502,500 tons.

Exports May Decline

According to the latest customs data, galvanized sheet exports reached 1.1975 million tons in July 2025, bringing the cumulative total for January-July 2025 to 8.1207 million tons, a 12.34% year-on-year increase from 7.2284 million tons in 2024. Overall, domestic galvanized sheet exports in July saw limited growth compared to June.

In August, the price of ferrous metals remained high, and the export profit of galvanized sheets was compressed to a certain extent. In addition, in July, the Vietnamese Ministry of Industry and Trade officially announced the imposition of anti-dumping duties of up to 27.83% on some hot rolled coil steel products originating from China. As a result, some galvanized sheet factories saw a decline in export orders. The export volume of galvanized sheets in August may decline on a month-on-month basis.

Market outlook

On the whole, with the recent rise in raw material prices, the sales prices of many galvanized sheet and coil manufacturers were at a high level; after experiencing the bottom of demand in August, it is expected to usher in a small rebound, which will have a certain inhibitory effect on the growth of market inventory. SunSirs predicts that the market price of galvanized sheets and coils may be mainly adjusted in a narrow range in the later period.

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