SteelOrbis Shanghai
Galvanized coil prices have continued decreasing in
China this week; however, European market may grow hopes for Chinese
galvanized exporters due to the tight supply situation on the continent.
Chinese steelmakers are developing their
galvanized steel
production qualities day by day, and the beginning of
galvanized product exports from some Chinese mills to
Europe were reported on our site in the week. According to European sources, the supply situation is tight on the continent, and an increase in the
galvanized iron exports from
Russia and
Ukraine to
Europe is observed. However, these countries may fill their quotes before expected; which may give rise to Chinese
galvanized iron exports to the Continent. The high
galvanized iron price in
Europe, which rose also because of high nickel prices, is also another reason that may make Chinese
galvanized iron attractive.
On the other hand, domestic Chinese market is still gloomy, as
galvanized coil prices kept decreasing around RMB 90-100/mt ($11-13) throughout last week. Moreover, the
trading volume is still at a low level. Market inventories have increased greatly week on week.
In Shanghai,
galvanized coil market inventories increased more than 20,000 mt. The market price of hot and cold rolled sheets and coils have already dropped to a low level, leading to a decline in the base price for value added products such as
galvanized coils and color
coated coils. In addition, the market inventories of
galvanized coils climbed up rapidly, compared with the previous weeks. Besides, the market demand is still at a low level because of summer. Although traders have begun to reduce their sales prices rapidly, in line with the rest of the steel market, customers are keeping away from purchases in order to see a further price decline.
Benxi Steel and Hengtong Steel announced that they kept their
galvanized iron prices unchanged for August. However, the market is not expected to respond accordingly in the short term because of the rapid increase in
production. According to statistical data released this week, Chinese mills produced 1.0948 million mt
galvanized coils in June, up 23,900 mt from May.