Research

Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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February 2009 | Galvanized Steel and Tinplate Market Tracker


Weak demand pushes down prices: Asian markets analysis


Domestic Chinese demand is showing no signs of a recovery and prices have started to move south.

Domestic Chinese demand is showing no signs of a recovery and prices have started to move south. Offers in Shanghai for 1mm HDG are now being made at around Rmb4,200–4,300/tonne ($613-628/tonne), which is roughly Rmb471/tonne ($69/tonne) less than January’s offers of Rmb4,620–4,650/tonne ($678-680/tonne). Any transactions we are hearing of have been for small tonnages as traders and mills are struggling for business.

In response to the demand slowdown, mills have been quick to act and have started to cut production of HDG to prevent a build up in their inventories. Several privately owned mills have shut shop, while others have reduced production levels by carrying out maintenance on blast furnaces or rolling mills.

Prices expected to soften further... Baosteel’s price announcements for April delivery are expected to be released at the end of this...

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