Galvanized Plain Sheet Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Galvanized Plain sheets in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Galvanized Plain Sheet Price Trend for the Q1 of 2024

Asia

In the first quarter of 2024, China's galvanized plain sheet market faced challenges from its debt crisis, sluggish consumer spending, and growing steel overcapacity, hindering domestic galvanized plain sheet demand in the region. However, the export sector offers a silver lining amid these oscillations and somehow stabilizes the galvanized plain sheet market. Despite an increase in steelmaking capacity in Southeast Asia and India, delays due to COVID-19 and weaker galvanized plain sheet prices hampered the projection and functioning rates of these plants.

Galvanized Plain Sheet Price Chart

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China's steel output cuts, however, were for a limited time frame, as the government prioritizes economic growth. Additionally, the competitive pricing and resilient demand from emerging economies also altered the trajectory of the galvanized plain sheet price trend in the first quarter of 2024.

On the other hand, China's property sector, a major galvanized plain sheet consumer, remained a concern, with a decline in the number of new home construction projects and overall galvanized plain sheet demand decline in Q1 of 2024. Overall, China's domestic galvanized plain sheet market trajectory in 2024 mirrored 2023 levels, reflecting the complex dynamics shaping the global steel market.

Europe

At the onset of the first quarter of 2024, the galvanized plain sheet market witnessed a decline in prices due to decreased demand from the construction and automotive industries in Germany, fueled by economic concerns amid a weakening economy. The manufacturing activities experienced a significant downturn in February, further dampening consumption rates in the German spot market. Additionally, high electricity costs hindered the competitiveness of Germany's manufacturing sector globally.

Therefore, dull manufacturing activities since January, coupled with plummeting construction activity, have added to the challenges. However, there's a modest inflation rebound primarily from easing energy prices; the traders and consumers adopted caution as the rising rates of interest only offer limited support.

The shipping costs for galvanized plain sheets have soared by over threefold since the Red Sea crisis, with volatile freight rates and extended lead times intensifying the logistical challenges. The extended lead times from far eastern countries to Europe by an additional 15-25 days compound the complexity of the supply chain for German galvanized plain sheet supply.

North America

The galvanized plain sheet prices in the US experienced a sudden fall due to the decline in the market activities of its downstream industries and their derivatives, such as hot rolled coil and cold rolled coil, throughout the first quarter of 2024. The major setback for the trading community came in the form of limited export rates due to the drying up of the Panama Canal and the rerouting of the Red Sea route amid the ongoing Israel-Hamas crisis.

Despite an optimistic growth in the initial phase of the quarter fueled by the price increases of steel mills, the galvanized plain sheet prices fell sharply, surprising market participants in the mid and latter phases of the first quarter. The US steel companies, however, remained positive amid the current issues and raised the bar of their production activities even after the unprecedented rise in the cost of crude oil during the aforementioned period.

Analyst Insight

According to Procurement Resource, the price trend of the Galvanized Plain Sheet is expected to oscillate in the forthcoming quarters as the demand from the downstream construction and automotive industries is subjected to the functioning of the global economy.

Galvanized Plain Sheet Price Trend for the October - December of 2023

Asia

The prices of galvanized plain sheet oscillated in the last quarter of 2023. In the early phase of this quarter, India imposed anti-dumping duties on China. However, the effect of these sanctions was not very visible as the export rates of galvanized plain sheet from China showed only minimal fluctuations. These rising exports from China posed a risk for the other Asian countries and thus galvanized plain sheet prices followed a definite uncertain path throughout the fourth quarter of 2023.

Europe

The implications of new carbon taxes have forced the manufacturers to adopt green methods of galvanized plain sheet production. The sector has already received a large sum of investments but switching to these practices lowered the production rates of galvanized plain sheet in the last quarter of 2023. On the other hand, the demand for galvanized plain sheet from the downstream automotive and aerospace industries followed an upward trajectory, which in turn led to the stabilization in galvanized plain sheet quoted prices.

North America

Similar to the global scenario, the galvanized plain sheet production in the US was affected by the decarbonization initiatives. Along with the decline in domestic production, the supply from overseas industries was also low as the Panama Canal route was blocked due to lower water levels. The demand side, however, projected substantial growth after the UAW strikes were called off and the automotive industries geared up their manufacturing numbers.

Analyst Insight

According to Procurement Resource, the price trend of Galvanized Plain Sheet are estimated to face a number of challenges, such as an imbalance in the trade of steel and other raw materials and a rise in global initiatives to lower carbon emissions.

Galvanized Plain Sheet Price Trend for the July-September of 2023

Asia

Galvanized Plain Sheets are zinc-coated steel sheets that are used more for outside construction or in the manufacturing of machinery being built for exposed operations like automobiles. Despite the vital usability, the galvanized plain sheets market experienced consistent backtracking in the third quarter of 2023. The procurement from manufacturing and construction industries remained meek for the entire period. Another big reason was the existing supply glut.

Since various global problems like Covid 19 pandemic and the regional armed conflicts kept the manufacturing and construction sectors struggling for the past few years, the galvanized plain sheet supplies kept piling up. Further, when the markets finally started opening up after a long time, the pace of recovery was very slow. Moreover, the crippled end-user purchasing capacity downgraded the sales estimates miserably. All these factors oppressed the galvanized plain sheets price trend as the market sentiments struggled to revive throughout the discussed period of time.

Europe

The European galvanized plain sheet market’s struggle was even more severe because the Russia-Ukraine conflict was taking place in its backyard. Skyrocketing inflation and disturbed supply chains kept the market gasping. The pace of recovery was not substantial enough to uplift the galvanized plain sheets market considerably in the given quarter. Overall, dull market sentiments were observed.

North America

The North American galvanized plain sheet industry acted in an almost identical manner to the Asian and European markets. The price graph remained downward swinging since the high economic instability in the region forced the downstream consuming sectors down.

Analyst Insight

According to Procurement Resource, the Galvanized Plain Sheet market outlook does not appear to be improving in the immediate future as it will require rapid inventory movement to facilitate market growth.

Galvanized Plain Sheet Price Trend for the First Half of 2023

Asia

The first quarter showcased a positive trend in the prices of galvanized plain sheets due to improving market dynamics in the automotive sector. The spring holiday season proved to be favourable for the rise in prices of the galvanized plain sheets due to increased procurement of steel and strengthening of market dynamics. But towards the end months of the first quarter, the high costs of production forced the manufacturers to reduce their output rates and also caused a decline in the purchasing potential of buyers.

These factors continued to show their effect in the second quarter also. In addition to this, the rising economic uncertainties, sluggish movement of the automotive sector, and falling market of steel scrapes negatively impacted the price trend of the galvanized plain sheet.

Europe

The market dynamics of Asia Pacific were mirrored in the European region too. Like the Asian market, the first quarter witnessed a surge in the prices of galvanized plain sheets. The high cost of energy production, increase in the number of orders, and enhanced interest of buyers in the market led to a positive movement of the galvanized plain sheet trend.

The second quarter, however, did not follow these steps and the prices fell gradually. Initially, the trend was stable due to soaring energy and feedstock costs. But declining global conditions and slow movement of the construction sector caused the level of inventories to surge, negatively impacting the galvanized plain sheet market.

North America

The declining stockpiles of the product and strong demand from the automotive industries caused the price trend of galvanized plain sheets to surge in the first quarter of 2023. The demand was also driven by the increased interest of consumers in this sector and the large number of orders from the mills. But the trend did not pass on to the second quarter as the prices declined steeply in this quarter.

The global negative economic conditions and increased levels of inventories caused the price trend to decline. In addition to this, the financial burden of closing two major US banks ultimately caused an adverse effect on the automotive sector and the overall consumption rates of the buyers.

Analyst Insight

According to Procurement Resource, galvanized plain sheet prices are estimated to showcase a mixed trend in the upcoming quarters as the automotive sector is experiencing serious fluctuations amid falling global economic conditions.

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