Galvanized coil prices continue increasing

SteelOrbis Shanghai This week, the market price of galvanized coils increased continuously. Angang Steel and WISCO increased their galvanized coils ex-factory price further but the market inventories of galvanized coils fell slightly compared to that of last week. Therefore traders raised their offer prices continuously. On the other hand, as the high market price is not accepted by end users, the market risk is high. On March 8, the average market price of 1.0 mm galvanized coil was RMB 5,033/mt ($626), up RMB 216/mt ($27) from the previous week; that of 0.5 mm galvanized coil was RMB 5,300/mt ($659), up RMB 160/mt ($20) weekly; while that of 0.23 mm Indian Bhushan imported galvanized coils was RMB 6,567/mt ($817), up RMB 300/mt ($37). Because of the short supply of thick galvanized coils, the increase range of thick specification was still bigger than that of others this week and the average range reached RMB 216/mt ($27). Meanwhile, as India boosted its export price of galvanized coils, the market price of galvanized coils imported from India increased greatly in this week. Overall, all varieties' prices were still in strong upward trend with average range of RMB 160-300/mt ($20-37). In addition to Angang Steel and WISCO's ex-factory price increases, less galvanized coil supplies in the market and growing market demand support galvanized coils' market prices. Currently, the total market inventory of galvanized coils is still at a low level excluding Boxing market, as the galvanized coil producers reduced their supply to the market although dealers submitted new orders to steel mills. At weekend, the prices of hot rolled steel and cold rolled steel decreased a little, which may have some bad influence on the galvanized coils' market prices. The market prices of galvanized coils are currently stable.