Chinese Galvanized Plain Sheet prices fell by 0.7% week-to-week, tracking the bearish trend in hot rolled coil futures. Spot galvanized sheet and coil also softened, laying the groundwork for a subdued market climate. Since October is approaching its conclusion, demand has not even reached expectations, further undermining the confidence of merchants in the galvanized plain sheet product segment.
Key Highlights:
Following the holidays, restocking demand brought temporary pick-up in Galvanized Plain Sheet spot market business, with some dealers sustaining transaction levels above pre-holiday levels. However, since most of the sales were from pre-holiday inventories, shipment momentum was still weak. Continued arrivals led to a tiny inventory build-up, and traders turned more cautious, questioning the continuance of ensuing demand and turning wait-and-see.
The galvanized plain sheet operating rate last week stood at 80.95%, with capacity utilization rising marginally to 63.61%, higher by 0.29 percentage points from the prior week. Weekly output came in at 907,200 tons, higher by 4,100 tons. Steel mill inventory declined marginally to 513,800 tons, while social inventory rose to 1.3501 million tons, higher by 32,800 tons. Total inventory thus rose to 1.8639 million tons, higher by 31,300 tons on a weekly basis.
Large steel mills have released price increases for Galvanized Plain Sheet in their November 2025 ordering policies. Shougang increased its order price by 100 RMB/ton for galvanized plain sheet. Benxi Steel also followed the suit, with galvanized plain sheet prices rising by 100 RMB/ton while prices for hardened steel, pickling, and silicon steel remain the same (tax excluded). Equally, Anshan Iron and Steel raised 100 RMB/ton for galvanized plain sheet, without alteration of pickling prices, also tax-free.
Uncertainty over the expected tax policy—still short on concrete implementation details—has led many galvanized plain sheet market players to take a conservative, wait-and-see attitude. In addition, as some producers have pre-cancelled shipments prior to the announcement, a decline in orders for customs clearance documents is anticipated for October. Consequently, galvanized plain sheet export orders will likely pull back in the near term, with total October exports estimated to fall month-on-month from September.
Confronted with pressure on inventories, most traders have marginally reduced prices for Galvanized Plain Sheet to spur sales. Short-term prices will continue under pressure. Purchasing by end-users is still cautious, lowering merchant optimism regarding growth in future demand. Therefore, traders are focusing on quick turnover to deal with stock levels, as there is an increased fear of market risk.
