Galvanized coil prices stable in general

SteelOrbis Shanghai Galvanized coil market prices were generally stable with slight decrease from March 17 to 23. Some steel mills increased their galvanized coil ex-factory prices. Although the market inventories of galvanized coils increased a little compared to that of last week, trade volume has not expanded. As the upward trend of prices ended, the straddle has become stronger with more uncertainty in the market. On March 22, the average market price of 1.0 mm galvanized coil was RMB 5,040/mt ($628), down RMB 43/mt ($5) from the previous week; that of 0.5 mm galvanized coils was RMB 5,283/mt ($658), down RMB 17/mt ($2), and that of 0.23 mm galvanized coils imported from Indian BHUSHAN was RMB 6,683/mt ($832), down RMB 16/mt ($16) weekly. On the whole, the market prices of galvanized coils have remained unchanged compared to that of last week. The currently high galvanized coil prices and inventories facing a low trade volume for a long time, led some traders to sell at lower prices. On the other hand, Benxi Steel and Tangshan Hengtong increased their galvanized coil ex-factory prices further this week. Benxi Steel increased galvanized coil prices RMB 200/mt ($25), while Tangshan Hengtong increased RMB 100-300/mt ($12-37). The ex-factory price increases did not have any impact on the market prices. Traders are uncertain about the future direction of galvanized coil market prices as the ex-factory prices increased while the market prices have become weaker. Galvanized coil inventories increased a little this week, mainly because many traders limited their sales volume previously when market prices had risen. Meanwhile, new galvanized coil shipments have began to reach the market recently. Demand from the downstream industries is to determine the direction of galvanized coil markets according to traders.