Demand for galvanized coils begins to enlarge

SteelOrbis Shanghai Although net galvanized coil imports of China increased in March, the inventories of galvanized coils in local markets are still low. Nevertheless, the market prices of galvanized coils remained unchanged, while the trading volume began to enlarge. The end users have begun to strengthen their purchases of galvanized coils in order to maintain normal production through May Day holiday. The market inventories of galvanized coils decreased slightly compared with last week, which supports current market prices. Another support to market prices came from some steel mills this week. Handan Steel increased its galvanized coil ex-factory prices RMB 700/mt ($87), and the galvanized coil producer TangShan Hengtong increased its prices RMB 50-150/mt ($6-19). Especially the prices of galvanized coils increased RMB 100/mt ($12/mt) in Boxin market following Hengtong's price increase. However, customers' response to the price increase is yet to be seen. According to the data released by the statistics office, China imported 318,300 metric tons of galvanized coils in March, up 88,900 metric tons compared with February. The March exports of galvanized coils were 187,500 metric tons, up 64,200 metric tons month on month. Consequently, the net import of galvanized coils increased 24.700 metric tons month on month to 130,800 metric tons in March. Galvanized coil prices may experience increases following the one week long holiday.