How will the galvanized home appliance sheet sector perform when the off-season is coming? [SMM Analysis]

After the peak season of March and April, consumption of galvanized sheets is gradually declining. Dragged down by the domestic real estate sector, orders for construction galvanized sheets continue to be sluggish. However, galvanized sheets for automobiles are relatively strong, driven by automobile production and sales.

According to the National Bureau of Statistics, from January to April this year, the output of refrigerators and air conditioners increased by more than 10% YoY. Although the output of washing machines is on a downward trend YoY, it is still higher than last year. Overall, the production and sales data of the home appliance industry in Q1 performed relatively well. An SMM survey showed that the performance of home appliance production and sales boosted domestic orders for galvanized home appliance sheets. Some companies newly entering the home appliance sheet field also saw a growth trend in orders, and the operating rate of domestic galvanized home appliance sheet companies was good in Q1.

Home appliance manufacturers usually order galvanized home appliance sheets 1-2 months in advance, and end-user data provides a lagging indicator for the output of galvanized sheets. Normally, the home appliance market gradually enters the off-season from late May, with weak demand for raw materials. Orders for galvanized home appliance sheets are also dragged down. Additionally, the rising summer temperatures and high temperature and rainy weather are also negative for production, and the operating rate of home appliance sheet manufacturers may fall MoM.