[Zn Price] Galvanized Tube Prices in North China Rise after Halts at Steel Plants

SHANGHAI, Jul. 29 (SMM) - Galvanized tube/pipe price in North China, including Hebei, Beijing and Tianjin increased after halts at local steel plants, which bolstered strip steel prices, SMM reports.

Selling price of Youfa hot-galvanized tube/pipe in Tianjin was hiked by 20 yuan per tonne July 27, with 3,250 yuan per tonne for 13.3cm*3.5mm products.

"Strip steel prices in and around Tianjin have been driven up recently now that steel plants in Hebei’s Tangshan were forced to close due to environmental protection inspections. Rising rebar futures prices on the SHFE also inspired investors”, said one Tianjin-based galvanizer.

"The hike in hot-rolled strip steel prices in Beijing, Tianjin and Hebei, combined with low raw materials on hand, allowed local galvanized tube/pipe producers to ramp up purchases for strip steel, further supporting strip steel prices. This in turn boosted galvanized tube/pipe price”, SMM zinc analyst adds.

The price gains of galvanized tube/pipe will be limited in the near term, though, SMM predicts. Demand from end-users including automobile, construction and home appliance sectors is still soft and will unlikely improve until late August and early September.

Galvanized plate/sheet and coil prices in North China stabilized recently, but Shanghai saw prices dipping to record lows. Prices for 1mm hot-galvanized coil dropped to 3,165 yuan per tonne July 27, SMM data show.

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