Market price of galvanized coil remains stable

SteelOrbis Shanghai This week, the market price of galvanized coil continued to remain stable. Neither trading volume nor market inventories changed much compared with last week. Some steel mills also released new ex-factory prices. On October 19, the average market price of 1.0 mm galvanized coil is RMB 5,710/mt ($723), up RMB 27/mt ($3) compared with last week; that of 0.5 mm galvanized coil is RMB 6,060/mt ($767), up RMB 10/mt ($1) compared with the price last weekend; while the price of 0.23 mm galvanized coil imported from Indian Bhushan company is RMB 7,200/mt ($911), up RMB 33/mt ($4). This week, the market price of galvanized coil maintained its stable tendency. The trading volume and market inventories of galvanized coil remained unchanged. Though the market price of HR and CR began to decrease this week, the market supply of galvanized coil still stayed at a low level, while the GI supply that mills put into the domestic market also remained low. Thus, the GI market price maintained a continuous steady trend. However, looking at the long term, the decrease in HR and CR market price will influence the market price of GI and the attitude of traders will also change slowly. As regards zinc, prices in the home market were at RMB 33,000/mt ($4,172) this week - still at a high level. The new galvanized coil prices steel mills released this week either remained stable or increased slightly, thus providing strong support for the steadiness of the market price. Baotou Steel increased its galvanized coil ex-factory price by RMB 100/mt ($13), while LiaoYuan Steel increased RMB 30/mt ($4). Consequently, it is expected that the market price of galvanized coil will remain stable in the short term, though the risk of a decrease begins to grow.