Prices of galvanized coils keep decreasing

Thursday, 29 June 2006 17:25:42 (GMT+3)   |  
       

This week, the market price of galvanized coils decreased continuously. The trading volume and market inventories kept unchanged compared with last week. On June 29, the average market price of 1.0mm galvanized coil was RMB 6,057 per ton ($757), down RMB 56 per ton ($7) compared with last week; that of 0.5mm galvanized coil is RMB 6207 per ton ($776), down RMB 76 per ton ($10) compared with the price in last weekend; while that of 0.23mm India BHUSHAN imported galvanized coils is RMB 7,880 per ton ($985), down RMB 23 per ton ($3). This week, with the influence of continuous drop in market prices of HR and CR, the market price of galvanized coil kept falling. The trading volume and the market inventories kept unchanged. The main reason was as follows: After entering summer, the whole galvanized coil market began to enter slack season. Meanwhile, the market price of HR and CR kept decreasing continuously. So, the attitude of traders of galvanized coil began to change and they began to decrease the price to promote sale one after another on the premise of guaranteeing the profit. But because the international market demand kept strong and the domestic zinc price was also as high as RMB 28,000 per ton ($3,500), traders all thought that though the galvanized coil price would drop to some extent, it was impossible that the galvanized coil market would crash. The country announced the May statistical data of steel industry this week. According to the new statistics, the May galvanized coils production of Chinese steel mills was 1.0709 million tons, up 47,500 tons compared with April. The May import of galvanized coils was 251,200 tons, down 79,900 tons compared with April. On the other hand, the May export of galvanized coils was 185,300 tons, up 50,300 tons compared with April. So, the net import of galvanized coils in May was 65,900 tons, down 130,200 tons compared with March. The reason for this decline was that steel mills strengthened export before the announcement of the Chinese government's cutback of the value-added tax refund and that the higher prices in international market made it more difficult for China to import galvanized coil from overseas markets. No steel mills released new price list this week.

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