Galvanized iron prices soften slightly

SteelOrbis Shanghai Galvanized coil market prices saw a decrease in week 46 both due to the gloomy trend in other flat steel products and the stability in zinc prices. Besides, steelmakers have also stopped increasing their ex-factory prices. On November 16, the average market price of 1.0 mm galvanized coil was RMB 5,657/mt ($719), down RMB 13/mt ($2) compared with a week ago; that of 0.5 mm galvanized coil is RMB 5,950/mt ($756), down RMB 40/mt ($5), while that of 0.23 mm galvanized coils imported from the Indian Bhushan company remained unchanged at RMB 7,200/mt ($913). While the prices of all flat steel products were in a downward trend, the market demand for galvanized coil declined. The attitude of traders regarding the future of the market is not optimistic, and so the GI market price continued decreasing throughout the week. On the other hand, the quantity of new products supplied by the mills to the domestic market continued to remain at a low level, as the exports market is strong. Nevertheless, the mills stopped increasing their prices. The new prices announced by Lianyuan Steel and Benxi Steel this week were unchanged from the previous levels. Meanwhile, the zinc price in the domestic China market is still at a high level at RMB 36,500/mt ($4,644). Therefore galvanized iron prices are not expected to fall sharply in the future. Yet, the halt of the zinc price increase has also been influential on the slight decline of galvanized iron prices this week. According to the October production data, Chinese mills produced 1,229,500 metric tons of galvanized iron, up 59,700 metric tons compared with September.