Color coated coil market prices weakened

This week the market prices of color coated coil saw little movement compared to last week, while the market trading volume and market inventories likewise did not change much. Also during the week, the Chinese authorities released the steel industry production data for the month of February. Finally, Benxi Steel made an upward adjustment to its ex-factory prices. On March 16, 2007, the average market price of 0.476 mm color coated coil was RMB 6,883/mt ($890), down RMB 17/mt ($2) compared with last week; the price of 0.4 mm color coated coil was RMB 7,427/mt ($961), unchanged from last week; while the average market price of 0.286 mm Yieh Phui imported color coated coils was also unchanged at RMB 8,375/mt ($1,083). Influenced by the HDG market trend, the color coated coil market began to experience a weakening trend during the week. Market supply and trading volume were at the same level as last week. Due to low downstream demand, the market trends of HR, CR and HDG all weakened recently, and the market prices of color coated coil began to move on a stable trend. Because of the long-standing low demand for color coated coil, the attitude of traders began to change and the color coated coil market prices of some private medium-scale steel mills declined slightly. Thus, if the demand for color coated coil sees steady growth with market inventories remaining at a reasonable level, then the color coated coil market can be expected to maintain its positive development trend. Otherwise, the market prices of color coated coil are likely to decline. Also this week, the Chinese authorities released the national color coated coil production data for February. According to the new figures, the Chinese mills' color coated coil production in the month of February totaled 170,800 metric tons, down 35,800 metric tons compared with January. Finally, the new ex-factory price of Benxi Steel color coated coil increased RMB100/mt ($13).