Market price of galvanized coil continues decrease

SteelOrbis Shanghai This week, the market price of galvanized coil continued to decreasing. The trading volume did not change much while market inventories increased to some extent. Some steel mills released new ex-factory price. On November 9, the average market price of 1.0 mm galvanized coil was RMB 5,670/mt ($721), down RMB 33/mt ($4) compared with the end of week 44; that of 0.5 mm galvanized coil is RMB 5,990/mt ($762), down RMB 33/mt ($4) compared with the price in the end of week 44; while that of 0.23 mm galvanized coil imported from Indian Bhushan company is RMB 7,200/mt ($913), remaining unchanged. In week 45, the market price of galvanized coil declined slightly. The trading volume remained quiet, but market inventories of galvanized coil decreased. Nevertheless, the ex-factory price of galvanized coil still remained at a high level in week 45. This week, the new ex-factory price of Angang galvanized coil was unchanged, while that of Wuxi NewDaZhong galvanized coil increased RMB 150/mt ($19). Though the HR and CR market price began to maintain stability and the market inventories of galvanized coil declined, due to the macro-controls of the Chinese government the downstream demand decreased gradually, and therefore the attitude of traders to the future market was not optimistic. The GI market price also continued to decrease this week. On the other hand, the export of mills in October was still strong and the supply from the mills to domestic market was still at a low level. Meanwhile, Zinc prices saw a considerable hike this week. So, it is expected that the market price of GI in the future will maintain its steady trend with a slightly decrease. About the zinc price, in the home market it stood at RMB 36,500/mt ($4,644) in week 45, up RMB 2,500/mt ($318) compared with last week. The new price steel mills released this week maintained a stable trend or increased just slightly, which indicated that the attitude of the mills regarding the future of the market was still comparatively optimistic.