Galvanized Steel Demand in Appliances – Market Resilience in a Challenging 2026

Introduction: A Tale of Two Markets

The 2026 first-half results for China’s appliance industry reveal a sharp divergence: domestic sales contracting while exports surged. This “cold inside, hot outside” dynamic has significant implications for galvanized steel demand, which has demonstrated resilience driven by structural shifts in the appliance landscape .

The Domestic Appliance Market: A Cooling Picture

Industry statistics show that China‘s domestic appliance market faced headwinds in the first half of 2026:

• Total retail sales of home appliances across all channels reached approximately 425 billion yuan, representing a year-on-year decline of 9.9% .

• Several core categories experienced double-digit declines.

The air conditioner segment has been particularly affected. Data indicates that from January to July 2026, domestic air conditioner retail sales volume declined 12.5% year-on-year, with retail value falling 16.2% .

Small kitchen appliances and cooking appliance segments have also shown weakness, with several publicly listed companies reporting revenue contractions in their mid-year financial results. The slowdown is partly attributed to reduced real estate-led demand and slower replacement cycles .

The Export-Led Bright Spot

In stark contrast, appliance exports have performed strongly:

• Total appliance exports for the first half of 2026 reached 360.96 billion yuan .

• The so-called ”cooling appliances“—air conditioners, electric fans, and refrigerators—collectively accounted for 107.91 billion yuan in exports .

• Refrigerator exports saw cumulative year-on-year growth of approximately 10% .

This export growth is not simply about volume; it reflects an upgrade in product mix and value. Chinese manufacturers are increasingly exporting higher-value, brand-oriented products rather than low-cost OEM goods .

Implications for Galvanized Steel Demand

Refrigerator-Driven Demand: The strong export performance of refrigerators directly supports galvanized steel consumption. Refrigerators require galvanized steel for back panels, side panels, and liners. The volume of exports translates into sustained material demand .

Washing Machine Stability: While data on washing machine exports is aggregated, industry sources indicate they remain a stable source of galvanized steel demand. The category has been identified as a key contributor to the “refrigerator + washing machine” growth pattern that supports coated steel consumption .

Air Conditioner Weakness: The domestic air conditioner slowdown partially offsets the positive demand from refrigerators and washing machines. However, export air conditioner orders may provide some buffer .

Outlook and Considerations

While domestic appliance sales may continue to be constrained by broader economic factors, export momentum, particularly for refrigerators, appears likely to sustain galvanized steel demand. The appliance sector‘s shift toward energy-efficient, higher-value products may also support demand for premium galvanized steel grades with advanced coatings and finishes.