SunSirs: Prices for Color Coated Steel Sheets Trended Stable Last Week

Price Trends:

According to the SunSirs Commodity Market Analysis System, prices for color coated steel sheets remained stable last week. On April 27, the market price for color coated sheets stood at 6,333 RMB/ton; by April 30, the price remained unchanged at 6,333 RMB/ton. Compared to the week prior, prices held steady, while showing a year-on-year decline of 4.766%.

Analysis and Commentary

Galvanized Sheet: Last week, prices for galvanized sheet saw a slight uptick. On Thursday (April 30), the price stood at 4,194 RMB/ton—an increase of 0.215% compared to the week prior, yet a decline of 2.283% year-on-year. Downstream demand within the coated and plated steel market remained lackluster, resulting in sluggish trading activity.

Cost Side: Rising raw material prices were putting pressure on steelmakers' profitability

Last week, upstream raw material costs continued to rise, providing significant support for the prices of color coated steel sheets.

1. Cold-rolled Substrate: Prices for cold rolled substrate in Tangshan rose by 40 RMB/ton week-on-week. With the current mainstream transaction price standing at 3,230 RMB/ton, the processing costs for color coated steel sheets have been directly driven up, significantly intensifying cost pressures on steel mills.

2. Galvanized Substrate: Prices for galvanized sheets have experienced slight fluctuations; meanwhile, rising costs for raw materials have further squeezed profit margins for color-coating enterprises.

3. Industry Profitability: The color-coating industry was characterized by a state of "high costs and low demand." Processing margins for private mills remained razor-thin, and most enterprises were primarily focused on moving inventory by aligning with market rates and offering price concessions. Although major steel mills possessed an inclination to hold prices firm, they faced significant difficulty in substantially raising their quoted rates.

Supply Side: Operations Stable and Under Control; Capacity Remained Ample

Last week, the operating rate within the color coated sheet industry remained stable; capacity utilization among sampled steel mills stayed within a reasonable range, resulting in generally steady overall supply. In terms of industry capacity, the national total for color coated sheets is projected to reach approximately 56 million tons in 2025, with an annual output of 24–25 million tons. With a capacity utilization rate falling below 50%, a state of ample supply is expected to persist over the long term. The East China region, serving as a core industrial cluster, accounts for 67.2% of the national capacity, demonstrating a high degree of regional supply concentration. Notably, capacity continues to expand in key production hubs—such as Boxing—with approximately 500,000 tons of new capacity added annually; consequently, persistent pressure to rationalize excess capacity continues to constrain the potential for price appreciation over the long term.

Demand Side: Domestic Demand Recovery Lacked Momentum; Exports Faced Challenges

1. Domestic Demand: Distinct Off-Season Characteristics; Driven Primarily by Essential Procurement

Overall downstream demand remained relatively weak, as the recovery in major consumption sectors—including construction, home appliances, and steel structures—had fallen short of expectations. The construction sector, impacted by the slump in the real estate industry, had seen a decline in both new project starts and completed floor area, resulting in sluggish demand for the construction of factory buildings and warehouses. Meanwhile, the home appliance industry was experiencing a seasonal downturn in orders; end-user enterprises were adopting an "on-demand" procurement strategy and showed little inclination to build up inventory. Current market transactions are predominantly driven by essential restocking to meet immediate needs and orders related to project completion; lacking large-scale, centralized procurement activity, the overall trading atmosphere remains subdued.

2. Export Demand: Divergent External Demand and Escalating Trade Barriers

Exports serve as a vital pillar supporting the domestic color coated steel sheet industry. Over the past three years, export volumes have steadily climbed, reaching 9.6 million tons; however, the sector currently faces a confluence of pressures. Brazil has imposed substantial anti-dumping duties on Chinese color coated steel sheets (amounting to $545.39 per ton), while competition has intensified in traditional export markets such as ASEAN nations and the Middle East. Compounded by a slowdown in the global economic recovery, the growth rate of exports has consequently moderated. To circumvent these trade barriers, leading domestic steel enterprises are accelerating their "overseas capacity expansion" initiatives, and establishing manufacturing plants abroad is gradually emerging as a prevailing trend within the industry.

Inventory Status: Factory and social inventories remained stable, while the pace of destocking was slow

Last week, both mill inventories and broader market stocks of color coated steel sheets remained generally stable, showing no significant signs of either accumulation or depletion. Major steel mills proactively managed production levels—scheduling output strictly according to demand—to prevent excessive inventory buildup. Meanwhile, inventories held by traders remained at low levels, characterized primarily by a strategy of rapid turnover; while overall inventory pressure has eased somewhat compared to the preceding period, it remains relatively high when benchmarked against the same period in previous years, and the pace of inventory reduction continues to be slowed by constraints on demand.

Market outlook

In the short term, prices for color coated steel sheets are likely to remain stable.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.