Price trend

This week, the price of galvanized coil rebounded slightly, but the increase was not as significant as that of cold-rolled coil. This year, the decline of galvanized sheet coils has further expanded since the second half of the year. Recently, both prices and capacity utilization rates have been at low levels in nearly 5 years, while inventory was hovering at a high level. Although the price increase before the holiday has stimulated market sentiment, terminal demand was still weak, so restocking was needed before the holiday. According to the Commodity Market Analysis System of SunSirs, the price of galvanized steel coils in China rebounded slightly this week. As of September 14th, the average market price of galvanized steel coils in China was 4,055.00 RMB/ton, an increase of 0.31% on a weekly basis.

Analysis review

Fundamentals: In terms of production this week, private production enterprises of galvanized sheet coils mainly produced on a per order basis, with little change in overall output. The prices of galvanized sheet coil merchants in the spot market have slightly increased, and the overall shipment performance was average. According to the latest data obtained by SunSirs, the overall production rate of galvanized sheet this week was 81.97%; The capacity utilization rate was 56.99%, an increase of 0.38% compared to last week; The weekly output was 812,900 tons, an increase of 5,500 tons compared to last week; The inventory of steel mills was 515,000 tons, a decrease of 6700 tons from last week. The inventory of galvanized steel in major domestic market warehouses was 1.1821 million tons, a decrease of 38400 tons compared to the previous week.

On the downstream side, as the Mid Autumn Festival holiday approached, downstream customers were still mainly purchasing on demand. In terms of mentality, most merchants adopted a cautious and wait-and-see attitude towards the future market, and their current operations are mainly focused on shipping and destocking.

Market outlook

Although the price increase before the holiday has stimulated market sentiment, terminal demand was still weak, so restocking was needed before the holiday. SunSirs’ expects that galvanized steel coils will continue to maintain a weak trend after the holiday.

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