Silent week for galvanized coils

SteelOrbis Shanghai Galvanized coil market prices kept stable throughout the week. The trading volume and market inventories did not change much compared with last week. July production data indicated an increase. Benxi Steel released the new ex-factory price list. This week, galvanized coil market demand and market inventories did not change much compared with last week. Because of hot weather and the rainy season in southern China, the market demand is not expected to expand much in the short term. The market prices of cold rolled and hot rolled coils are calm. Therefore, the market price of galvanized coils and level of the trade volume remained unchanged. Some sources said that China's export tax rebate rate would be adjusted from 11 percent to 8 percent in effect from September 1, but there is not an official announcement yet. The fourth quarter ex-factory price of Baosteel will be announced soon and all traders expect Baosteel to increase its ex-factory prices, as a support for the market price. However, traders are still cautious about the future of market. In this regard, they are continuing to keep their inventories at a limited level. Benxi Steel announced RMB 350/mt ($44) decrease for its August delivery galvanized ex-factory prices, indicating that steel mills are also cautious. China announced July production statistical data of galvanized coils this week. According to the new statistics, Chinese mills produced 1,116,300 metric tons in July, up 21,500 metric tons month on month. On August 17, the average market price of 1.0 mm galvanized coil was RMB 5,483/mt ($686), up RMB 16/mt ($2) week on week; that of 0.5 mm galvanized coils is RMB 5,717/mt ($716), up RMB 34/mt ($4) week on week; and that of 0.23 mm galvanized coils imported from Indian Bhushan Steel is RMB 7,233/mt ($905), down RMB 17/mt ($2).