Wiggling begins, prices firm in galvanized market

SteelOrbis Shanghai The domestic market price of galvanized coil kept quiet throughout the week in China. The trading volume increased slightly and market inventories did not change much compared with last week. The weather is getting cooler and the galvanized coil purchasers are resuming their production. Therefore, the domestic demand for galvanized coils turned better slightly this week and the trading volume increased a little. Market inventories of galvanized coils did not change much compared with last week. The market price of HRC increased a little in the last few days. However, it has not pushed galvanized coil prices up yet. Baosteel announced approximately RMB 550/mt ($69) increase on its galvanized coil ex-factory prices this week for the fourth quarter. It has been received as good news for the market and traders, and may play a positive role on the future market trend. However, whether downstream customers would accept Baosteel's ex-factory price increase is not certain yet. Meanwhile, Lianyuan Steel announced that it is keeping galvanized coil prices unchanged. On August 24, the average market price of 1.0 mm galvanized coil was RMB 5,483/mt ($686), that of 0.5 mm galvanized coil was RMB 5,717/mt ($716), and that of 0.23 mm galvanized coils imported from Indian Bhushan was RMB 7,233/mt ($905). None of the prices changed week on week.