Galvanized coil prices still decreasing

SteelOrbis Shanghai Market price of galvanized coils has continued to decline this week with RMB 75-130/mt ($9-16) range. The trading volume did not better off compared with last week. Market inventories remained stable. June statistical data about steel exports and imports have been announced this week. Influenced by bad market expectation and hot weather, the market demand was still at a low level this week. As the new GI resources supplied to the market were few, the market inventories of galvanized coil did not see a significant change, only a slight decrease. The continuous decrease in domestic galvanized coil prices in China also let to the wait-and-see attitude in international market, and China's galvanized coil export prices began to decrease. China's galvanized coil export price has recently been around $750-770/mt, down $20/mt compared with the previous weeks. This week, some steel mills in China announced subsidy policy for their dealers. The traders generally have a pessimistic view regarding the future of the market. June statistical data about steel exports and imports have also been announced this week. Accordingly, galvanized coil imports increased 59,000 mt month on month to 310,200 mt in June, while the exports increased 90.500 mt month on month to 275,800 mt. Therefore, the net galvanized coil import decreased 31.500 mt month on month to 34.400 mt. It was reported that the increase in exports was due to the expectations regarding Chinese government's possible tax rebate decrease announcement in August. This week, Masteel and Hengtong Steel adjusted their ex-factory prices. Masteel's galvanized coil price decreased RMB 350-450/mt ($44-56), and that of Hengtong decreased RMB 50/mt ($6).