China's Cold-rolled Coil And Hot-dip Galvanizing Are Basically Stable

China's cold coil and hot-dip galvanized export prices have seen small changes in the past week due to volatility and uncertain outlook in the local market. On Friday, however, most sellers withdrew their offers as futures plunged.

According to insiders, this week, most of the major steel manufacturers in China offered cold coils at USD 630-635/ton FOB, compared with USD 625-635/ton FOB a week ago, and USD 630-650/ton FOB a month ago . Hot-dip galvanized (1mm, Z120) is quoted at US$690-705/ton FOB, compared with US$690-710/ton FOB a week ago, and has dropped by US$15-20/ton this month. On Friday, many sellers withdrew their offers (down 94 yuan/ton or $13/ton compared with the day) due to the sharp reduction in hot futures volumes on the Shanghai Futures Exchange.

The relative stability of export prices has been affected by moderate fluctuations in the local market, lower steel production and weak demand.

Meanwhile, overseas demand remains subdued, with only mid-sized producers closing deals. Small quantities of Chinese cold rolls are ordered in the Middle East at around $590 FOB. The price gap between Chinese and Indian products is about 100 US dollars / ton, so many customers still choose to wait and see. “The market is in suspense. Uncertainty about the future of the Chinese market is limiting buying for now,” a trade source told Metal Expert.