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.