The galvanized plain sheet market experienced significant fluctuations across key regions in the second quarter of 2025. Driven by varying factors such as supply dynamics, demand recovery, and macroeconomic influences, the market saw divergent trends in North America, APAC, Europe, and South America. This article offers an in-depth review of price movements and underlying factors in each region, with a particular focus on the USA, South Korea, Germany, and Brazil.

North America: Price Surge Amid Steady Demand

Overview of the Q2 2025 Price Movement

In the United States, the Galvanized Plain Sheet Price Index rose by 5.6% quarter-over-quarter in Q2 2025. This increase reflected a healthier demand environment compared to the previous quarter. The market dynamics in North America, particularly in the US, were supported by stable domestic mill output, along with restocking activities from key end-use sectors.

Key Drivers Behind the Price Increase

1. Stable Mill Output North American mills maintained consistent production levels through Q2 2025. Unlike previous quarters, when maintenance schedules and disruptions slowed supply, the second quarter benefited from streamlined logistics and uninterrupted operations. This reliability encouraged buyers to increase purchases.

2. Restocking by HVAC and Construction Sectors The heating, ventilation, and air conditioning (HVAC) sector, along with civil construction projects, particularly in the Sun Belt states, significantly contributed to demand. Warmer weather conditions coupled with infrastructure spending initiatives prompted contractors and distributors to replenish stock.

3. Improved Supply Chain Conditions Transportation bottlenecks that plagued earlier quarters were alleviated, allowing for more predictable delivery timelines. Distributors were encouraged to rebuild inventories, anticipating stronger demand in the latter half of 2025.

Outlook

Given the robust activity in housing starts, commercial renovations, and industrial projects, demand for galvanized sheets is expected to remain strong through Q3 2025. However, global inflationary pressures and fluctuations in raw material prices could temper price gains in the coming months.

APAC: South Korea’s Declining Trend Amid Oversupply

Price Decline in South Korea

Contrary to the North American trend, the Galvanized Plain Sheet Price Index in South Korea declined by 13.1% quarter-over-quarter in Q2 2025. This significant drop was primarily caused by oversupply issues and weaker demand patterns.

Supply Factors

1. Excess Capacity in Regional Mills South Korean producers faced intensified competition and overcapacity issues, leading to aggressive pricing strategies aimed at maintaining market share. This increased supply exacerbated price pressure throughout the quarter.

2. Reduced Exports Exports to ASEAN countries and the EU markets declined amid rising shipping costs, logistical delays, and trade policy uncertainties. South Korea’s inability to clear excess inventories further contributed to downward pricing.

Demand Factors

1. Weaker Appliance Production Domestic manufacturers of home appliances scaled back production in response to softer consumer spending and global semiconductor shortages. The appliance industry, a major consumer of galvanized sheets, saw muted procurement activity.

2. Cooling Industrial Activity Investment slowdowns across segments such as manufacturing, infrastructure, and automotive assembly led to restrained demand for galvanized sheets.

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Outlook

Unless capacity utilization rates improve or export markets revive, prices in South Korea may remain under pressure. Policy interventions or targeted stimulus measures may be required to stabilize demand in the short term.

Europe: Germany’s Price Recovery on Automotive Rebound

Price Increase in Germany

In Europe, Germany’s Galvanized Plain Sheet Price Index increased by 6.4% quarter-over-quarter in Q2 2025. This recovery signaled a positive shift from previous quarters that had been affected by sluggish demand and supply imbalances.

Factors Driving Growth

1. Reduced Asian Imports With logistical challenges and high transportation costs affecting shipments from Asia, German mills experienced lower competitive pressure. This allowed domestic producers to regain market footing and raise prices.

2. Automotive Sector Restocking The automotive industry, especially suppliers of electric vehicle components, ramped up procurement to prepare for increased manufacturing cycles in the second half of the year. This sector’s restocking activity significantly buoyed demand.

3. Green Initiatives and Regulatory Push Investments in eco-friendly infrastructure and compliance-driven projects led to moderate increases in construction-related galvanized sheet purchases.

Challenges

Despite the upward trend, rising energy costs and concerns over global supply chain disruptions continue to pose challenges. However, government support in renewable initiatives and infrastructure spending provides a cushion against extreme volatility.

Outlook

The German market is expected to experience steady growth in the near term, though price stability will depend on how broader geopolitical uncertainties and energy pricing evolve.

South America: Brazil’s Decline Amid Weak Construction Activity

Price Movement in Brazil

In contrast, Brazil’s Galvanized Plain Sheet Price Index decreased by 5.3% quarter-over-quarter in Q2 2025. The decline was driven by weak demand across the construction sector, seasonal downturns, and excess inventory carried over from Q1.

Key Supply and Demand Influences

1. Weak Civil Construction Activity The construction industry in Brazil continued to struggle with financing constraints, political uncertainty, and rising inflation. Delays in public works and private residential projects limited the need for new material procurement.

2. Seasonal Demand Lull The second quarter traditionally marks a seasonal slowdown in construction as projects are deferred during transitional weather periods. This cyclical trend further pressured demand.

3. Inventory Buildup Carryover from earlier quarters where demand forecasts overshot actual consumption led to bloated inventories. Distributors and retailers, aiming to offload stock, accepted lower prices.

Potential Risks and Opportunities

While Brazil’s outlook remains subdued, expected improvements in infrastructure funding and macroeconomic stabilization efforts could support demand growth by Q4 2025. Additionally, renewed focus on renewable energy projects may offer sectoral support.

Comparative Insights Across Regions

Region Q2 2025 Price Change Key Drivers USA (North America) +5.6% Stable mill output, HVAC and construction restocking South Korea (APAC) –13.1% Oversupply, weak appliance production, lower exports Germany (Europe) +6.4% Reduced imports, automotive sector restocking Brazil (South America) –5.3% Weak construction, seasonal lull, excess inventory

The diverging trends across regions highlight how local economic conditions, industry-specific factors, and global trade dynamics interplay in shaping pricing behavior. While the North American and European markets are poised for moderate growth, South Korea and Brazil face significant headwinds.

Conclusion

The galvanized plain sheet market in Q2 2025 presented a tale of contrasts—growth in some regions driven by end-use sector recoveries, and declines in others rooted in supply glut and subdued demand. In North America, stable production and sector-specific restocking underpinned a positive pricing environment. Europe, particularly Germany, leveraged reduced competition and automotive procurement to strengthen prices. Meanwhile, APAC and South America, exemplified by South Korea and Brazil, grappled with oversupply and cyclical demand downturns.

Looking ahead, global demand patterns will hinge on broader economic recoveries, trade policies, energy costs, and infrastructure investments. For market participants, regional nuances are crucial when navigating pricing strategies, supply allocations, and forecasting.

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