Galvanized coil prices stable due to increase in exports

SteelOrbis Shanghai This week, the market price of galvanized coil continued to remain stable with just a slight increase. The trading volume and market inventories did not change much compared with pre-National Day levels. Some steel mills released new ex-factory prices. On October 12, the average market price of 1.0 mm galvanized coil was RMB 5,683/mt ($718), up RMB 26/mt ($3) compared with week 39; that of 0.5 mm galvanized coil is RMB 6,050/mt ($765), up RMB 57/mt ($7) compared with the price last weekend. Meanwhile, the price of 0.23 mm galvanized coil imported from Indian Bhushan company is RMB 7,167/mt ($906), up RMB 34/mt ($4). After National Day, market inventory of galvanized coil still remained at a comparatively low level. Customers also maintained the positive purchase trend for products. On the whole, the supply-demand relationship is comparatively balanced. With the cutback in the value-added tax refund, steel mills strengthened their exports. As a result, their supplies to the domestic market remain low: this provides strong support for future market stability. As regards zinc, domestic market prices showed a slight increase influenced by the increase in the price overseas. At present, the price of zinc in the home market is RMB 33,000/mt ($4,172) - still at a high level. The new prices the steel mills released after the festival all remained stable or else increased slightly, thus providing strong support for the steadiness of the market price in the upcoming period. This week, the new ex-factory price of Angang and WISCO galvanized coil were without change, while that of NewDaZhong galvanized coil increased RMB 150/mt ($19).