SunSirs: Prices for Color Coated Steel Sheets Trended Stable This Week (May 11–15)

Price Trends

According to the SunSirs Commodity Market Analysis System, the domestic market for color coated steel coils operated with overall weakness and volatility this week, with prices trending slightly downward within a narrow range. Upstream substrate costs eased, while downstream end-user demand remained persistently sluggish; consequently, overall market trading was light, and traders faced significant pressure to move inventory. Steel mills selectively lowered their quoted prices, fostering a strong wait-and-see sentiment within the market, and price spreads between mainstream specifications gradually widened. On May 11, the market price for color-coated steel coils stood at 6,400 RMB/ton; by May 15, the price remained at 6,400 RMB/ton. Prices have stabilized relative to the previous week, though they represent a 3.512% decline compared to the same period last year.

Analysis and Commentary

Galvanized Sheet: Prices for galvanized sheets experienced a slight decline this week. As of Friday (May 15), the price stood at 4,245 RMB/ton—down 0.117% from the previous week and 0.07% year-on-year. Downstream demand within the coated and plated steel market remained lackluster, resulting in sluggish market trading activity.

Cost Side: Substrate Weakens, Cost Support Diminishes

This week, prices for hot-rolled substrates fluctuated downward; steel mills offered significant price concessions on shipments, directly driving down production costs for color-coated sheets and coils. Zinc ingot prices experienced only minor fluctuations, while the costs of auxiliary materials—such as chemical coatings and resins—remained stable, showing no significant upward momentum. Overall, the cost side provided insufficient support for color-coated sheets and coils this week, thereby creating room for market prices to soften.

Supply Side: Stable Operations, Slight Inventory Accumulation

Operating rates at major color-coated steel mills remain at normal levels, with capacity utilization remaining steady and production schedules driven by demand. Small and medium-sized manufacturers are flexibly adjusting their production pace, accepting orders on an as-needed basis. While on-site inventory pressure at steel mills remains manageable, stocks in the circulation market have seen a slight increase; consequently, to accelerate capital turnover, merchants are increasingly engaging in high-volume, low-margin sales strategies. Conversely, some large-scale mills demonstrate a strong resolve to hold firm on pricing, resulting in a distinct divergence in spot market quotations.

Demand Side: Dominated by Essential Needs; Insufficient Incremental Growth

Downstream sectors generally continue to exhibit typical "off-season" performance:

1. Construction Steel Structures: The commencement of projects—such as factory buildings, roofing and wall cladding, and site hoardings—has slowed. Procurement is primarily limited to small-batch restocking driven by immediate, essential needs, with large-scale orders remaining scarce.

2. Home Appliances, Ventilation, and Decoration: Orders for items such as appliance casings, air ducts, and decorative panels remain stable; there is no concentrated bulk purchasing activity.

3. Export Market: Overseas demand is moderate, and international market price quotes remain on the weaker side; consequently, export orders provide only limited impetus to the domestic market. Overall, downstream buyers remain cautious in their purchasing, adhering strictly to an "on-demand" strategy; as a result, market transaction volumes are struggling to expand significantly.

Market Outlook: Driven Primarily by Essential Demand; Insufficient Incremental Growth

In summary, current prices for color-coated steel sheets are hovering at a one-year low, presenting significant upside potential. However, as the moving averages have not yet crossed over in the short term, prices for color-coated sheets are likely to continue rising in the immediate future.

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