Base product price decline reflects on CC prices

SteelOrbis Shanghai This week, the market price of color coated coil kept decreasing. The market trading volume and the market inventories did not change much compared with last week. Angang and Wuxi NewDaZhong adjusted their ex-factory price of color coated coil this week. On July 7, the average market price of 0.476 mm color coated coil was RMB 7,023/mt ($879), down RMB 100/mt ($13) compared with that in last week; that of 0.4 mm color coated coil was RMB 7,577/mt ($948), up RMB 27/mt ($3) compared with last week; while that of 0.286 mm color coated coils imported from Yieh Phui was RMB 8,245/mt ($1,032), down RMB 25/mt ($3). Galvanized coil market price decline and the shrinking of downstream customers' demand contributed to the downward trend of color coated coil market prices. Meanwhile, the decline in galvanized coil prices brought a reduction in the raw material cost for color coated coils because it is the base plate of color coated coil. Some small and medium scale privately owned color coated coil makers began to decrease their ex-factory prices. However, state-owned steelmakers continued increasing their prices. This week, Anshan Steel's color coated coil ex-factory prices increased RMB 100-300/mt ($13-38); while that of Wuxi NewDaZhong decreased RMB 50-200/mt ($6-25).