Strong exports diminish galvanized inventories in domestic market

SteelOrbis Shanghai This week, the market prices of galvanized coils increased by a wide margin in China and the trading volume began to enlarge. The market inventories of galvanized coils decreased a little. Meanwhile, Tangshan Hengtong released new prices this week. 1.0 mm galvanized coil prices increased RMB 213/mt ($27) and 0.5 mm galvanized coil increased RMB 254/mt ($32) week on week; while that of 0.23 mm galvanized coils imported from Indian BHUSHAN increased RMB 240/mt ($30) weekly. This week, the market price increased greatly compared with last week and the trading volume began to enlarge. Galvanized coil market inventories dropped to some extent. The main reasons were: 1. The rapid increase of zinc prices: Though the zinc price dropped slightly at the end of the week, it is still high at RMB 34,000/mt ($4,250). 2. Firming up of purchases: Customers strengthened their galvanized coil purchases to supplement their stocks, which accelerated the diminishing of galvanized coils from the market. 3. Fewer supplement in galvanized coil market inventories: Presently, the price of foreign galvanized coils is much higher than that of domestic galvanized coils. Therefore the exports of domestic producers are still large, which leaves little quantity of products for the domestic market and causes to a decline in galvanized coil market inventories. This week, Tangshan Hengtong released the new price list. The ex-factory prices of galvanized coils increased RMB 200/mt ($25). Now, traders are more optimistic regarding the galvanized coil market price trend. In order to obtain a larger profit, some traders began to restrict their trading volumes.