CC coil market may keep firm despite ex-factory price decreases

SteelOrbis Shanghai Color coated coil market prices kept stable basically throughout week 34. The trade volume and market inventories did not change much compared with last week, too. Some steel mills issued new ex-factory price lists. On August 25, the average market price of 0.476 mm color coated coil was RMB 6,350/mt ($798), down RMB 17/mt ($2) compared with that in last week; that of 0.4 mm color coated coil was RMB 6,967/mt ($875), down RMB 50/mt ($6) compared with last week; while that of 0.286 mm color coated coils imported from Taiwanese Yieh Phui retained RMB 8,000/mt ($1,004) level. This week, the whole color coated coil market kept quiet comparatively. Market price and market trading volume did not change much compared with last week. Though Baosteel decreased its fourth quarter price for color coated coil by RMB 300/mt ($38), it increased galvanized coil prices greatly. Jiangyin UnionSteel also decreased color coated coil ex-factory prices by RMB 400/mt ($50). Meanwhile, the market inventory of color coated coils is low. Therefore, color coated coil market prices did not change much compared with last week. Following Baosteel, other steel mills are also expected to issue their ex-factory price lists one by one. The influence of new ex-factory prices on the market remains to be seen. With the increasing market demand, traders think that the future market price of color coated coils would keep the stable trend with small fluctuations.