Galvanized coil market price begins to decrease

SteelOrbis Shanghai This week, the market price of galvanized coil began to see a downward movement. The trading volume was down a little whereas market inventories showed an increase. The Chinese authorities announced the September import & export data for the steel industry this week. Meanwhile, some steel mills released new ex-factory prices. On November 2, the average market price of 1.0mm galvanized coil is RMB 5,703/mt ($725), down RMB 34/mt ($4) compared with last week, while that of 0.5 mm galvanized coil is RMB 6,023/mt ($765), down RMB 37/mt ($5) compared with the price of last weekend. The price of 0.23 mm India BHUSHAN imported galvanized coils remains unchanged at RMB 7,200/mt ($913). This week, the market price of galvanized coil decreased slightly. The trading volume went down a little while market inventories of galvanized coil showed an obvious increase. The decrease of HR and CR market prices influenced the GI market price. Though the ex-factory price of galvanized coil still maintained its high level, due to the obvious increase of market inventories and the decrease of downstream demand, the GI market price began to decrease this week. On the other hand, mill exports in September were still strong and the supply of the mills to the domestic market is not expected to increase greatly. Meanwhile, the ex-factory prices of GI and Zinc also continued at a high level. Thus, it is thought that the GI market price will not decrease significantly in the short term future. As regards Zinc, the price in the domestic market was RMB 34,000/mt ($4,320) this week, up RMB 1,000/mt ($127) compared with last week. The new prices the steel mills released this week showed continued stability or just a slight increase – an indication that the traders' purchase cost is still at a high level. Also this week, the Chinese authorities released the September import & export data for the steel industry. According to the new figures, September imports of galvanized coil totaled 321,200 tons, down 10,900 tons compared with August. September exports of galvanized coil amounted to 325,200 tons, up 34,700 tons compared with August. Thus, net galvanized coil export in September was 4,000 tons. This week, the new ex-factory price of WISCO and Baotou Steel galvanized coil remained unchanged, while that of LianYuan Steel galvanized coil increased RMB 30-200/mt ($4-25). Meanwhile, Handan Steel's galvanized coil price increased RMB 180/mt ($23).