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Home Steel News Production capacity of pre-painted steel in Chinese market rebounds, inventories drop to 3-year low
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Production capacity of pre-painted steel in Chinese market rebounds, inventories drop to 3-year low

4 Dec 2024 16:16 reported by Alston Tsai

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As of the end of November, the capacity utilization of Chinese pre-painted steel mills was 51.35%, a week-on-week decrease of 0.57%. Compared with October, the utilization rate in November rebounded slightly.

According to statistics, the funding availability rate for construction sites has turned from falling to rising, and the overall funding for housing construction projects and infrastructure projects has recovered.

In addition, the market inventory of pre-painted steel coils in November has declined for four consecutive weeks. The current stock of 423,000 tons is the lowest in the past three years, a decrease of 10,600 tons from the previous week and a decrease of 32,800 tons from the previous month.

In terms of steel mills' production costs, the price trend in November was weak, resulting in corporate profitability not improving.

Moreover, in order to complete the annual agreed volume, some local distributors are still selling inventory at low prices, so the margin of pre-painted steel has been significantly reduced.

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