In the past week, the hot dip galvanized (HDG) market in China has continued to decline, though at a slower rate than in the previous week. On June 24, the average prices of hot dip galvanized coils in the main markets in China are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Thick HDG |
1.0mm x 1,250 mm |
SGCC |
5,757 |
-13 |
887 |
-2 |
Thin HDG |
0.5mm x 1,000 mm |
SGCC |
5,873 |
-30 |
905 |
-5 |
On June 23, the price of SGCC 1.0 mm x 1,250 mm x C galvanized coils in the markets of Shanghai, Guangzhou and Boxing respectively stands at RMB 5,800/mt ($894/mt), RMB 5,920/mt ($912/mt) and RMB 5,550/mt ($855/mt); meanwhile, the price of SGCC 0.5 mm x 1,000 mm x C stands at RMB 5,630/mt ($867/mt), RMB 6,410/mt ($988/mt) and RMB 5,580/mt ($860/mt) in these respective markets. These prices include 17 percent VAT ($1 = RMB 6.49).
In the past week, along with the decline in domestic prices of construction steel and cold rolled coil (CRC) products, the price of galvanized coils in the Chinese market has also decreased, though less as compared to other products.
HDG inventory in China's main markets is low. However, due to high temperatures in the north and the rainy season in the south, demand in the market is low, and end-users are buying cargoes in line with demand, keeping inventories at very low levels. It is hard to see a change in this situation in the short term.
In China's HDG market, interest rate increases, inflation and other factors make it difficult for traders to earn money. In addition, given the uncertainty in the market, most traders are adopting a wait-and-see approach and few transactions are concluded.
Summing up, it is expected that HDG prices in China will continue to decline in the coming week.