Galvanized coil market prices increased after May Day

SteelOrbis Shanghai This week, the market prices of galvanized coils increased and the trading volume began to enlarge. The market inventories of galvanized coils enlarged a little after May Day. Some steel makers announced new prices this week. On May 11, the average market price of 1.0 mm galvanized coil was RMB 5,237/mt ($654), up RMB 94/mt ($12) week on week. That of 0.5 mm galvanized coils was RMB 5,513/mt ($688), up RMB 56/mt ($7) compared with the price in the end of last week; while that of 0.23 mm galvanized coils imported from Indian BHUSHAN was RMB 6,910/mt ($863), up RMB 77/mt ($10). The main reason for the increase in market prices and enlargement in the trade volume this week was that the low inventories of end users, and customers began to strengthen their galvanized coil purchases as they need more to maintain normal production after May Day. On the other hand, traders also increased their offer prices with the expectation that prices would increase further in the future. The new galvanized coils of steel mills began to reach the market, which added to the market inventories. This week, some steel mills released new price lists. The ex-factory prices of Huaye galvanized coils increased RMB 650-800/mt ($81-100), that of NewDaZhong galvanized coils increased RMB 200/mt ($25).