Since the beginning of 2024, China's steel products have experienced a rapid decline, particularly rebar, due to the construction industry's demand. Cold-rolled products, including galvanized and pre-painted flat-rolled products, have also been significantly affected. In the first half of the year, state-owned steel mills relied on orders from automakers, resulting in fewer spot market resources and stabilizing prices.

After June, changing end-user orders and insufficient steel mill orders increased market supply. By the end of June, the capacity utilization rate for galvanized flat-rolled products enterprises was 63.83%, slightly down from 64.63% last year. Despite fluctuations, this rate remained higher than the previous two years post-March, reflecting high order levels and production enthusiasm.

Nationwide galvanized flat-rolled products inventory reached a three-year high in the first half of the year, peaking at around 2 million tons in late March and early April. By June's end, inventory stood at 1.77 million tons, up by 120,000 tons from last year.

In summary, weak market demand and additional capacity in the second half of the year may lead galvanized market to face challenges, which further make steel mill reduce profits.