Galvanized coil market price still stable

SteelOrbis Shanghai This week, the GI market price remained basically stable. The trading volume was still at low level, while market inventories increased to some extent compared with the previous week. Also, the Chinese authorities released their November production data for galvanized coil. On December 14, the average market price of 1.0 mm galvanized coil was RMB 5,590/mt ($716), down RMB 20/mt ($3) compared with last week, while that of 0.5 mm galvanized coil was RMB 5,940/mt ($761), up RMB 57/mt ($7) compared with the price last weekend. Meanwhile, the average market price of 0.23 mm galvanized coils imported from Indian Bhushan was unchanged at RMB 7,200/mt ($913). This week, the GI market price remained stable generally. The trading volume did not take any turn for the better and market inventories began to show an increase. As regards the whole market situation, the decline in market demand was the leading factor influencing the GI market prices. Though the steel mills still remained focused on exports and market inventories were generally low, in the absence of any amelioration over a long period the traders have had difficulty maintaining an optimistic attitude regarding the future market tendency. Consequently, they have all decided to focus on enlarging their sales. The obvious increase in market inventory after the focus on sales also added some pressure to the future market. This week, the domestic zinc price was RMB 36,500/mt ($4,673), down RMB 500/mt ($64) compared with last week. However, the price continues to fluctuate at an elevated level. The Chinese authorities this week released the November production data for galvanized coil. According to the new figures, the November galvanized coil production of China's steel mills was 1,304,000 metric tons, up 74,500 metric tons compared with October. Also this week, the Q1 2007 ex-factory prices of Benxi Steel's GI remained unchanged compared with December 2006. Summing up, the market price of GI is expected to maintain its stable trend. Yet the possibility of a price drop is becoming relatively greater.