On May 8, the domestic galvanized coil market showed steady to slightly firm trends, influenced by raw material costs, downstream demand, and macroeconomic policies. Trading activity improved moderately, though regional disparities persisted. Below is a detailed analysis of supply-demand dynamics, cost factors, and future expectations:
Prices of hot-rolled base materials remained elevated, coupled with fluctuating but upward-trending zinc prices, keeping production costs for galvanized coil under pressure. Some mills adjusted their ex-works prices slightly higher, reinforcing the floor for market prices.
• Infrastructure & Appliances: Procurement from construction projects showed mild improvement, while home appliance manufacturers maintained stable restocking demand, albeit with limited acceptance of high-priced resources.
•Export Market: Intensified global competition restrained significant order growth, prompting some suppliers to explore opportunities in Southeast Asia and the Middle East.
Production rates at major mills remained stable, and social inventories edged lower with no significant accumulation. Regional delays in logistics further tightened short-term supply in certain areas.
Recent regional infrastructure stimulus measures and green manufacturing initiatives are expected to bolster mid-to-long-term demand. However, market participants remain cautious amid global economic uncertainties.
The galvanized coil market is likely to maintain range-bound stability in the near term, with upward potential constrained by demand elasticity and cost volatility. Close monitoring of policy impacts and inventory shifts is advised.