SunSirs: A Brief Overview of Color Coated Steel Sheet Market Trends in April

Price Trends: Predominantly stable throughout the month, with slight regional divergence

According to the commodity market analysis system of SunSirs, spot prices for color coated steel sheets exhibited minimal overall fluctuation this month; mainstream quotations remained firm, and regional price spreads stayed within a reasonable range. Throughout April, the national average market price for color coated sheets held steady at 6,333 RMB/ton—remaining flat month-on-month—while declining by 4.77% compared to the same period last year. On April 1st, the market price stood at 6,333 RMB/ton; by April 30th, the price remained at 6,333 RMB/ton. Consequently, the average price for the month remained stable relative to the price at the beginning of the month, while registering a 4.766% decline year-on-year.

Galvanized Sheet: Prices for galvanized sheets saw a modest increase this month. On April 1, the price stood at 4,130 RMB/ton; by April 30, it had risen to 4,200 RMB/ton—representing a 1.694% increase compared to the beginning of the month, yet a 2.143% decline year-on-year. Downstream demand within the coated and plated sheet market remained lackluster, resulting in sluggish market transaction volumes.

Cost Side: Raw material prices continued to rise, intensifying pressure on steelmakers' profitability

This month, upstream raw material costs strengthened across the board, serving as the primary support for pre-painted steel coil prices while simultaneously significantly squeezing industry profit margins.

1. Substrate Materials: Prices for hot-rolled coils, cold rolled base materials, and galvanized sheets rose throughout the month. By month-end, the transaction price for cold rolled base materials in Tangshan reached 3,230 RMB/ton—a cumulative increase of 40 RMB/ton over the month. Meanwhile, settlement prices for hot-rolled coils in the Hanxing region remained at elevated levels, directly driving up processing costs for pre-painted steel coils.

2. Auxiliary Materials: Prices for zinc ingots and coatings remained at high levels. Coupled with slight increases in logistics and labor costs, the overall production costs for pre-painted steel manufacturers continued to rise.

3. Profitability Status: The industry was temporarily grappling with a "high costs, low demand" dilemma. Although major steel mills demonstrated an inclination to uphold prices, private mills faced razor-thin processing margins; consequently, the majority of enterprises were prioritizing sales by aligning with market rates and offering price concessions, resulting in overall profitability levels remaining at a low ebb.

Supply Side: Operating rates remained stable at high levels, and the landscape of ample capacity persisted

The overall supply of color coated steel sheets remained stable this month, with capacity utilization rates holding at high levels and no significant changes observed in production volume. According to industry monitoring, the national capacity utilization rate for color coated sheets in April stabilized within the 57%–61% range—a high point for the past three years—reflecting a strong willingness among steel mills to schedule production based on demand and to control output in order to safeguard prices. In terms of capacity structure, the total national capacity for color coated sheets stands at approximately 56 million tons; however, the actual utilization rate remains below 50%. The East China region accounts for 67.2% of the national capacity, indicating a high degree of concentration within these core production areas. With new annual capacity continuing to come online in regions such as Boxing, the industry faces persistent pressure from overcapacity, which serves to limit the potential for price appreciation. Mainstream steel mills have proactively controlled production, while private mills have flexibly adjusted their operating rates; consequently, overall supply remains ample, and there is no risk of a concentrated buildup of inventory.

Demand Side: Domestic Demand Failed to Rally During Peak Season; Exports Faced Pressure and Divergence

(I) Domestic Demand: Driven by Essential Needs; Recovery Proceeded at a Slow Pace

April, traditionally regarded as the "Silver April" peak season, saw downstream demand exhibit characteristics of a "peak season that failed to peak." Overall, purchasing activity was driven primarily by immediate, essential needs, lacking any large-scale, concentrated inventory replenishment.

1. Construction / Steel Structures Sector: The core factors behind the subdued demand included sluggish data on new real estate starts and project completions—with the "Guaranteed Delivery" initiative providing only limited support—as well as a slow pace of new project starts for factory buildings and warehouses, resulting in insufficient growth in new orders.

2. Home Appliances/Manufacturing Sector: Refrigerator exports have been a standout performer, with cumulative exports for the first quarter rising 10% year-on-year—a trend that has driven steady demand for color coated steel sheets. However, scheduled production for air conditioners in April declined by 4.9% year-on-year, while demand for washing machines and televisions remained stable. Overall, the home appliance industry is characterized primarily by frequent, small-batch purchasing, with no signs of concentrated inventory stockpiling.

3. Trading Characteristics: Downstream enterprises have generally adopted a strategy of "purchasing on demand and restocking on dips." They exhibit significant resistance to high-priced materials, while speculative demand remains sluggish; consequently, the overall market trading atmosphere is subdued.

(II) Export Demand: Total Volume Under Pressure, Significant Regional Divergence

This month, overall exports of color coated sheets declined year-on-year. Impacted by the dual factors of overseas trade barriers and a slowdown in the recovery of external demand, the export market's role in absorbing surplus supply has diminished; however, regional markets are exhibiting a divergent pattern.

1. Overall Performance: In the first quarter, cumulative exports of color coated steel sheets declined by 9.7% year-on-year. While exports rebounded month-on-month in March, they still fell by 11.67% compared to the previous year; this downward trend continued into April, primarily due to a high comparative base from the same period in 2025.

2. Trade Barriers: Countries such as Brazil and South Korea continue to impose substantial anti-dumping duties on imports from China. Brazil's anti-dumping duties, ranging from $329.27 to $597.44 per ton, directly constrain access to traditional export markets.

3. Regional Divergence: Emerging markets in Southeast Asia (the Philippines, Indonesia), the Middle East, and Latin America have become key sources of incremental growth, benefiting from the dividends of the RCEP and rising demand for infrastructure development. Conversely, orders from high-end markets—such as those in Europe and North America—continue to contract; consequently, overall exports are characterized by "increased volume but decreased prices," resulting in compressed profit margins.

Inventory Status: Decline in Both Mill and Social Inventories; Steady Pace of Destocking

Mill Inventories: Major steel mills are scheduling production on an "as-needed" basis and actively curbing output; consequently, finished product inventories remain at low levels, with mill-side stocks recording a slight month-on-month decline at the end of the month.

Social Inventories: Traders are primarily adopting a "quick-in, quick-out" strategy. In the Shanghai region, inventories of color coated sheets stood at 20,000 tons at month-end—a cumulative decrease of 1,000 tons (5%) over the course of the month—indicating a steady pace of inventory reduction. Overall, inventory levels remain within a reasonable range, posing no risk of excessive accumulation; thus, the inventory landscape provides moderate support to prices.

Market Outlook: Short-term volatility is expected to prevail, while the medium term points to a recovery in demand

In summary, current prices for color coated steel sheets are hovering near their annual lows, suggesting significant potential for an upward trend. However, given that the moving averages have neither crossed upward nor downward in the short term, prices for color coated sheets are likely to remain relatively flat in the immediate future.

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