Supply-demand begins sticking out in GC market

SteelOrbis Shanghai Main bullets of the galvanized coils market in China this week were; increases in ex-factory prices, slight drop in inventories and the expansion in the trade volume thanks to the increasing demand. Thanks to spring, the market demand has started to increase and the purchasing volume of downstream customers enlarged. Meanwhile, as the galvanized coil exports of domestic steel mills had started to increase earlier, the galvanized coil inventories were already at a low level. Therefore, although customers refused to accept the present high price level at the beginning, traders have begun to restore confidence on the future of the market. Now, the purchasing volume of customers enlarged and traders have devoted more efforts to selling, causing to the further decrease in market inventories. This week, some steel mills released their new price lists. Galvanized coil prices of Jiangyin UnionSteel increased RMB 400-600/mt ($50-75), that of Baotou Steel increased RMB 650/mt ($81), and that of Handan Steel increased RMB 400/mt ($50). The ex-factory price increases are beginning to lose their influences on the market, and the normal market supply-demand relationship is gradually playing a greater role in determining the market prices.