Galvanized Steel Coil: 2025 Market Review and Industry Insights

Galvanized Steel Coil: 2025 Market Review and Industry Insights

In 2025, China's galvanized steel coil industry exhibited pronounced supply-demand imbalances amid dual pressures of shrinking demand and capacity adjustments. Industry data indicates annual production reached approximately 25 million tons, marking a slight decline from 2024 and reflecting manufacturers' proactive output cuts to counter market weakness. This adjustment stemmed from slowing growth in real estate and infrastructure investment, which significantly weakened steel demand in the construction sector. Simultaneously, the home appliance industry, impacted by weak consumer confidence, further compressed the application space for galvanized steel coils.

Regionally, social inventories of galvanized steel coils in Central China continued to decline. The average inventory in the first half of 2025 decreased by over 20,000 tons compared to 2024, relatively easing inventory pressure for traders. This shift primarily resulted from end-users adopting a “just-in-time” procurement model and traders proactively reducing order volumes during the price downturn. However, weak demand remains the core issue. First-half transaction volumes in the Central China market declined by approximately 20% year-on-year, with monthly demand showing a consistent downward trend, highlighting persistent sluggishness in end-consumer spending.

Regarding capacity structure, the galvanized coil industry maintained a capacity utilization rate of around 60%, slightly lower than in 2024, indicating that enterprises balanced supply and demand by controlling output. Simultaneously, intensified environmental policies and export market volatility increased pressure for industry transformation, driving enterprises to explore high-end and intensive development paths.

Looking ahead, key industry insights suggest two approaches: First, technological innovation must enhance product value-added to address structural shifts in demand. Second, supply chain resilience should be strengthened through optimized inventory management to mitigate market volatility risks. Furthermore, policy guidance and export expansion will serve as critical pathways to break through demand bottlenecks, enabling the galvanized coil industry to achieve sustainable development amid challenges.