Pre-painted galvanized prices to increase in China
According to recent market reports, organic
coated sheet prices have started to show an upward trend in
China. However, market sources report that its too late for such a price increase due to other sheet products which experienced from price hike before.
The pre-painted
galvanized prices which were stable at $620/mt for the past few months, will increase to $630/mt for January delivery. At the same time, traders reported that the aforementioned product was offered for Chinese market at $600-610/mt CFR, however no booking at that level is confirmed yet.
Moreover, the demand from
China has slowed down for pre-painted
galvanized as a result of expectation of large increase in domestic output. But, new painting lines will start operation in the coming months, accordingly demand for substrate will rise and this will impact market prices.
In addition, Chinese importers are offering
galvanized sheets at $570/mt CFR. However, these price level is not good for painting lines which want to obtain a margin of $80-100/mt over substrate costs in order to turn a profit.