Ex-factory price hikes support color coated coil market prices

SteelOrbis Shanghai This week, the market prices of color coated coils increased largely. The trading volume went up steadily and the market inventories of color coated coils decreased a little compared with that before May Day. Some steel mills adjusted their ex-factory prices of color coated coils after May Day. The increase was especially remarkable for 0.476 mm products which went up RMB 304/mt ($38) compared with last week, while the prices of other products increased around RMB 150-200/mt ($19-25). Last week, the market was expecting Baosteel to announce an increase for its third quarter prices. Therefore, the market prices of Baosteel products went up sharply, which also drove up the prices of other mills' products. On the other hand, the rapid increase of galvanized coil prices recently, has a great impetus on the market price of color coated coils. Last week, some steel mills adjusted their prices: The ex-factory price of Huaye color coated coils increased RMB 350/mt ($44); that of NewDaZhong increased RMB 150/mt ($19); and that of Jiangyin UnionSteel increased RMB 100/mt ($12). The increase in ex-factory prices was another factor pushing up the market prices.