Business Society: The overall pace of decarbonization is slow, and galvanized sheet is weakly consolidating and operating

This week, the hot coil futures market fluctuated and the demand side steadily rebounded. The pace of downstream procurement has accelerated, and the trading volume has increased moderately. However, it is still mainly driven by rigid demand, with relatively limited incremental growth. Speculative demand has not yet been significantly released. According to the Commodity Market Analysis System of Shengyi Society, as of March 20th, the average price of galvanized sheet coil in the domestic market was 4120.00 yuan/ton, a slight increase of 0.37% compared to last week.

Fundamentals: The utilization rate of galvanized sheet coil production capacity continued to rise this week, leading to an increase in market supply. Although social inventory has decreased, the overall decline rate is slow. According to the latest data obtained by Business Society, the overall production rate of galvanized sheet this week was 91.91%; The capacity utilization rate is 66.85%, an increase of 1.41% compared to last week; The weekly output was 1.1809 million tons, an increase of 24900 tons compared to last week; The inventory of steel mills is 721000 tons, a decrease of 7600 tons from last week; Social inventory was 1.3553 million tons, a decrease of 0.41 million tons from last week; The total inventory was 2.0763 million tons, a decrease of 11700 tons from last week.

It is reported that in April, the performance of various types of steel orders received by steel mills in various countries was still acceptable, but the amount of investment in the general material market has decreased.

Industry News: On March 20, 2026, Hebei Baoheng Coating and Plating Plant welcomed a historic moment - the thermal load test of the 1 # galvanized aluminum magnesium production line was successfully completed, and the first qualified product was successfully rolled off the production line! This milestone achievement not only marks the stable production capacity of the production line, but also demonstrates Hebei Baoheng's firm determination and hardcore strength in the field of coating and plating, with deep cultivation, technological empowerment, and intelligent innovation upgrading!

According to data from the National Bureau of Statistics, China's air conditioning production in January and February 2026 was 40.118 million units, a year-on-year increase of 0.7%. The national refrigerator production in January and February was 16.643 million units, a year-on-year increase of 6.5%. The national production of washing machines in January and February was 18.579 million units, a year-on-year decrease of 0.8%. The national production of color TVs in January and February was 24.678 million units, a year-on-year increase of 2.3%.

Market forecast: The supply side will continue to operate at a high level, the production enthusiasm of steel mills will not decrease, the resource supply will be sufficient, and inventory pressure will not decrease. From the perspective of inventory performance, although the destocking process is still ongoing in some markets, the overall pace of destocking is relatively slow. Business Society expects that the domestic price of galvanized steel coils may continue to fluctuate narrowly in the short term.