As of late July 2026, China’s steel coil market faced oversupply and weak domestic demand, with hot-rolled and cold-rolled prices lingering at low levels. Against shrinking domestic profits, high value-added galvanized and color-coated steel (PPGI, PPGL) have become core export drivers. However, rising global trade barriers, including five-year anti-dumping duties imposed by South Korea (22.34%–33.67%) and Türkiye (22.37%–32.40%), have forced Chinese exporters to shift focus toward emerging markets with lower trade restrictions.

In H1 2026, continuous new capacity release lifted domestic supply. Key steel mills maintained a weekly hot-rolled coil output above 3 million tons, with consecutive inventory accumulation, keeping spot prices in a narrow low fluctuation range. Market demand showed structural divergence: construction steel remained sluggish, while new energy-related high-strength galvanized sheets saw steady demand growth. Off-season just-in-time purchasing further weakened overall market activity.

In export performance, China’s coated steel exports grew in Q1 2026 with double-digit growth in galvanized products. Q2 growth slowed due to overseas anti-dumping measures and local capacity expansion, yet coated steel remained the most resilient steel export segment. The Asia-Pacific region consumes nearly 70% of global coated steel, with Southeast Asia accounting for 40% of China’s color-coated exports and the Middle East 27%. Emerging markets in Southeast Asia, the Middle East, Africa and the South Caucasus have become key growth destinations, supported by China’s prominent price advantage over Japanese and Korean products

Upgrading product structure has become essential to avoid homogenized low-price competition. High-end products such as dual-phase steel, TRIP steel and new energy lightweight galvanized sheets deliver much better profit margins than ordinary sheets. Leading steel mills continue intelligent transformation to stabilize quality and attract high-end overseas orders.

Looking to H2 2026, domestic steel coil prices will remain range-bound. Q3 will witness seasonal demand recovery for high-end galvanized steel from new energy industries, while Q4’s traditional off-season may bring inventory pressure. Overall, China’s steel industry is in structural adjustment. Export strategies will focus on emerging market expansion and high-value PPGI/PPGL exports to hedge trade risks and stabilize overseas orders.

Source：https://finance.sina.com.cn/money/future/indu/2026-07-21/doc-iniiqefe8117213.shtml