The price of galvanized coil remains stable

SteelOrbis Shanghai This week, the market price of galvanized coil continued stable with just a slight increase. The trading volume and market inventories did not change much compared with last week. The country has released its August production statistical data of galvanized coil, while some steel mills released new ex-factory prices this week. On September 14, the average market price of 1.0 mm galvanized coil was RMB 5,560/mt ($700), up RMB 17/mt ($2) compared with last week; and that of 0.5 mm galvanized coil was RMB 5,860/mt ($738), up RMB 63/mt ($8). Meanwhile the average market price of 0.23 mm galvanized coils imported from Bhushan, India is RMB 7,133/mt ($905), down RMB 17/mt ($2). The market prices of galvanized coil remained quiet with minor increases. Market trading volume and market inventories of galvanized coil did not change much compared with last week. In the main, the increase in price may be attributed to the two following reasons: 1. The new ex-factory price of some steel mills remained unchanged or decreased slightly. This made the traders' purchase cost very high. In order to maintain normal profits, the traders were all obliged to increase the selling price. 2. September is a traditional sales season. Coming into September, traders thought that the downstream demand would increase and the customers would strengthen their purchases. Thus, traders kept the price stable or else increased the price slowly. Meanwhile, the low level of market inventories also enhanced traders' confidence. This week, the country released the August production statistical data for galvanized coil. According to the new statistics, the August galvanized coil production of China's steel mills was 1,146,300 tons, up 30,000 tons compared with July. This week, the October ex-factory price of Benxi Steel and Angang galvanized coil all remained unchanged.