Galvanized coil demand continuing to improve

SteelOrbis Shanghai Galvanized coil market prices increased slightly throughout the week. The trading volume increased a little and market inventories kept unchanged compared with last week. The country announced the July statistical data about export & import in steel industry. Panzhihua Steel released fourth quarter ex-factory price list this week. On August 31, the average market price of 1.0 mm galvanized coil was RMB 5,527/mt ($695), up RMB 44/mt ($6) week on week; that of 0.5 mm galvanized coil was RMB 5,770/mt ($726), up RMB 53/mt ($7), and that of 0.23 mm galvanized coils imported from Indian Bhushan was RMB 7,200/mt ($934), down RMB 33/mt ($4). This week, with the weather getting cooler, the market demand for galvanized coil turned better further. The purchase of the downstream customers has become active gradually and the trading volume increased a little compared with last week. Market inventories of galvanized coil kept unchanged. The high increase of Baosteel's fourth quarter galvanized coil ex-factory price recovered the traders' confidence by a certain degree. Panzhihua Steel also announced RMB 351/mt ($4) increase in its galvanized coil ex-factory prices for the fourth quarter this week. Meanwhile, the low level of market inventories for a long time and gradually increasing market demand have been among the conditions supporting the prices. This week, the market price of galvanized coil increased slightly. Galvanized coil market is progressing at a better speed compared to other segments of the steel market. China released July statistical data about steel exports and imports this week. According to the new statistics, the July import of galvanized coils was 291,600 metric tons, down 18,600 metric tons compared with June. The July export of galvanized coils was 285,300 metric tons, up 9,500 metric tons compared with June. So, the net import of galvanized coils in July was 6,300 metric tons, down 28,100 metric tons compared with June.