Zinc price decline softens galvanized prices

SteelOrbis Shanghai This week, galvanized coil market prices decreased slightly around RMB 30-50/mt ($4-6). The trading volume shrunk a little compared with last week and the market inventories kept unchanged. Some steel mills increased their ex-factory prices this week. Domestic zinc prices continued decreasing this week. The market price of domestic “Torch” brand 0# zinc decreased RMB 2,000/mt ($250) week on week to RMB 28,000/mt ($3,500). The decrease of the zinc price put a great pressure on galvanized coil market price. Furthermore, the fluctuation of CR and HR product market prices also made a certain influence on the galvanized coil market price. Moreover, hot weather in summer pulled the demand down to a certain degree. On the other hand, galvanized coil ex-factory prices of Masteel increased RMB 50/mt ($6), Wuxi NewDaZhong RMB 400/mt ($50), Tangshan Hengtong RMB 150/mt ($19), Benxi Steel RMB 310/mt ($39), Jiangyin Union Steel RMB 300/mt ($38), and Handan Steel RMB 400-600/mt ($50-75), which kept the decline in market prices limited.