The performance of galvanized and alu-zinc consumption in January-February 2022 are significantly better than market expectation.

The monthly output of galvanized coil and aluzinc coil is about 30 million tons, and the supply level is expected to be lower than the level of the same period last year, a drop of about 10%; exports have rebounded significantly year-on-year, and the estimated apparent consumption is about 25 million tons, a year-on-year The decrease is about 8.6%; in addition, considering the change in inventory, the actual consumption of galvanized coil and aluzinc coil is estimated to be about 24 million tons, a year-on-year decrease of about 5%. Under the control of growth, the economic situation has improved slightly, and the demand performance has not been as pessimistic as the market expected.

However, with the end of the two sessions and the relaxation of production restrictions during the heating season, the production status of enterprises has gradually recovered, and the supply level has gradually recovered. In addition, the spread of the epidemic across the country since March has made the suppression of downstream demand obvious. On the whole, demand is likely to be under pressure, which in turn will suppress the driving force of price increases. It is necessary to maintain a cautious attitude, maintain rallies, and recover profits.

From January to February, the actual consumption of galvanized coil and aluzinc coil decreased by only 5% year-on-year, which was significantly higher than market expectations. However, judging from the performance of supply and demand estimates in the later period, the pace of steel production resumption may be higher than the release of demand, which will put pressure on consumption and make it more difficult for prices to rise.