China's domestic HDG prices have continued to climb up during the past week. For example, the price of SGCC 1.0 mm x 1,250 mm x C material produced by local steelmaker Angang has risen to RMB 4,600/mt, up from RMB 4,450/mt last Thursday.
Last week leading Chinese mill Baosteel raised its HDG ex-works prices for July, thus driving market prices up and boosting the confidence of traders. Meanwhile, it is reported that other domestic producers Ansteel and Bensteel are also to raise their ex-works prices by RMB 300/mt soon. This week HR and CR spot prices in China have continued to move up, imparting upward momentum to HDG prices. However, as prices have now reached a relatively high level, the transaction situation is not so good with many purchasers deciding to maintain a wait-and-see attitude. As for traders, most are happy to see the price increases but they remain cautious at the same time. As the weather is getting warmer, demand is expected to be affected in the coming period; however, based on the current positive situation, the rising movement is likely to continue for another while.
With regard to the export situation, this week China's HDG export prices registered an upward movement due to the continuous rise of domestic prices. Currently, 1.0 mm thick HDG with 100g/m² Zn coating is being offered at $580/mt FOB China main ports, up $10/mt from last week.
As for domestic mills, Masteel this week adjusted its ex-works HDG price list for June, raising prices by RMB 120/mt ($17/mt) compared to its previous ex-works price list for the month. As a result, the price of the producer's 1.0 mm SGCC stands at RMB 4610/mt ($674/mt).
Based on the situation observed this week, the upward movement in China's domestic HDG market may continue into next week under the influence of the current positive momentum. According as prices get higher, the market is later likely to enter a more stable price trend.