Price trend

This week, the hot coil futures market had shown a fluctuating and weakening trend, and the spot market prices were also in a continuous weakening state. The trading atmosphere in the market was relatively poor. According to the Commodity Market Analysis System of SunSirs, the price of galvanized steel coils in China continued to weaken this week. As of October 21st, the average market price of galvanized steel coils in China was 4,352.50 RMB/ton, a decrease of 1.02% compared to the previous week.

Analysis review

Fundamentals: The utilization rate of galvanized sheet coil production capacity had increased this week. According to the latest data obtained by SunSirs, the overall operating rate of galvanized sheet this week was 82.99%; The capacity utilization rate was 59.36%, an increase of 0.07% from last week; The weekly output was 846,700 tons, an increase of 0.1 million tons compared to last week.

From the perspective of overall destocking speed, all three varieties of cold series had experienced destocking, but the overall destocking speed was slow, and the level was still higher than the same period last year. The inventory of steel mills was 515,100 tons, an increase of 4,300 tons from last week; The social inventory was 1.1389 million tons, a decrease of 12,700 tons from last week, and the total inventory was 1.654 million tons, a decrease of 8,400 tons from last week.

In terms of mentality: Although policies in the early stage had driven up spot prices, actual demand had not improved significantly, and prices had also fallen. Merchants still maintained a cautious and wait-and-see attitude towards the future market.

Market outlook

This week, the futures hot coil market showed a volatile downward trend, with the spot market generally following suit, and actual demand did not show a significant improvement. SunSirs’ analysis believes that the price of galvanized sheet coils will continue to operate weakly in the short term.

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