Since 2025, the prices of raw materials such as aluminum and zinc have fluctuated sharply, bringing great cost pressure to the galvanized aluminum coil industry. After the zinc inventory of the London Metal Exchange dropped to a historical low of 82,000 tons in the second half of 2023, it remained at a low level in 2025, driving the zinc price center to move up; aluminum prices showed a volatile upward trend affected by the rising dependence on bauxite imports from Guinea (accounting for 65%) and geopolitical risks.
Data shows that the correlation coefficient between aluminum and zinc prices reached 0.73 in 2025, and raw material costs accounted for more than 65% of the production cost of galvanized aluminum coils. Price fluctuations directly affect the profitability of enterprises. To cope with cost risks, domestic galvanized aluminum coil enterprises have strengthened hedging operations. In 2025, the frequency of enterprise hedging operations increased by 36% year-on-year, effectively hedging the risks brought by raw material price fluctuations.

Industry analysis points out that raw material prices will remain volatile at a high level in the future. Enterprises need to further optimize supply chain management, strengthen long-term cooperation with upstream raw material suppliers, and stabilize purchase prices. At the same time, accelerate technological innovation to reduce production costs by optimizing coating processes and reducing aluminum and zinc consumption. In addition, the promotion and application of recycled aluminum and recycled zinc will become an important direction for the industry to reduce costs and increase efficiency. It is expected that the application proportion of recycled aluminum in the production of galvanized aluminum coils will increase to 25% in 2026.