Small post-holiday increases in color coated coil market

SteelOrbis Shanghai This week the market prices of color coated coil only saw a slight increase. The market trading volume recovered to some extent compared with the pre-holiday levels, while market inventories of color coated coil did not change much. Also during the week, some steel mills released new ex-factory prices On March 2, 2007, the average market price of 0.476 mm color coated coil was RMB 6,800/mt ($879/mt), up RMB 50/mt ($6/mt) compared with last week; that of 0.4 mm color coated coil was RMB 7,383/mt ($954/mt), up RMB 123/mt ($16/mt) compared with last week; finally, the average market price of 0.286 mm Yieh Phui imported color coated coils was RMB 8,250/mt ($1,055/mt), up RMB 70/mt ($9/mt). This week was the first week back at work after China's Spring Festival holiday. With the announcement of Baosteel's second quarter ex-factory prices, the market prices of color coated coil also increased by a small range. Market inventories did not change much compared with the pre-holiday levels, while the trading volume saw gradual increase. Overall, the color coated coil market began to see greater activity. Since the market supply of color coated coil did not increase compared with the week before the holiday, traders were confident about the future market situation and so began to increase their sale prices slowly. As already stated, Baosteel released their Q2 2007 ex-factory prices during the week, affecting an increase of RMB 250/mt ($32/mt) compared with the previous levels. This hike gave a great stimulus to the market, with Baosteel's color coated coil market prices going up by around RMB 200/mt ($26/mt). Meanwhile, the market prices of other mills' color coated coil also increased. Due to the increase in Baosteel's ex-factory prices, it is thought likely that the other steel mills will now also boost their ex-factory prices. Thus, the expectations for next week is that the market price of color coated coil will continue its rise. Finally, along with Baosteel's price increase, Jiangyin Unionsteel hiked its colored coated coil ex-factory price by RMB 150/mt ($19/mt), while Wuxi NewDaZhong upped its price by RMB 130/mt ($17/mt).