Color coated coil market prices increase slightly

SteelOrbis Shanghai During the past week, the market price of color coated coil saw a slight rise, while the market trading volume and inventory levels of color coated coil remained stable. Also during the week, the Chinese authorities released the steel industry production and import&export data for December 2006. Meanwhile, some steel mills released new ex-factory prices for color coated. On January 26, the average market price of 0.476 mm color coated coil was RMB 6,717/mt ($863), up RMB 14/mt ($2) compared with last week; while that of 0.4 mm color coated coil was RMB 7,250/mt ($932), up RMB 17/mt ($2) on last week's level. Finally, the average market price of 0.286 mm color coated coil imported from Taiwanese Yieh Phui was RMB 8,100/mt ($1,041), up RMB 50/mt ($6). Overall, market prices of color coated coil did not fluctuate much last week. Baosteel increased its March 2007 ex-factory prices for color coated coil by RMB 100/mt ($13). This pushed the market prices of Baosteel's color coated coil a little higher, with the result that the average market prices of the product also increased a little. Besides, Jiangyin UnionSteel and Masteel also hiked their color coated coil ex-factory prices by RMB 100-200/mt ($13-26/mt) and RMB 150-250/mt ($19-32/mt) respectively. However, the trading volume for color coated coil did not see any expansion, meaning that the market price increase was not accepted by downstream customers. Total market demand remained at a low level. Meanwhile, the color coated coil supply from the steel mills to the domestic market also continued at a low ebb. Thus, though demand for color coated coil did not see any turn for the better, due to the low level of market inventory and the poor supply, the market prices of color coated coil remained stable. For the week ahead, it is expected that the market price of color coated coil will see a continuation of its stable trend. This week, the Chinese authorities released the December 2006 production data for color coated coil. According to the new figures, the Chinese mills' color coated coil production for December amounted to 229,500 metric tons, up 25,600 metric tons compared with November. Also this week, the Chinese authorities released the December 2006 import and export data for color coated coil. According to the figures, December imports of color coated coil totaled 26,500 metric tons, up 500 metric tons compared with November. Meanwhile, December exports of color coated coil reached 49,100 metric tons, down 34,700 metric tons compared with November. Thus, net exports of color coated coil in December amounted to 22,600 metric tons, down 35,200 metric tons from the previous month.