During the week ending September 29, average Chinese domestic hot dip galvanized (HDG) prices for thick specifications have edged up, though average prices for thin specifications have moved sideways, while transaction activity in the overall market has been at medium-to-low levels. Average HDG prices in the local Chinese market are presented in the following table.
During the given week, freight charges for road transportation have risen by 40 percent to 50 percent due to new road traffic management regulations aimed at tackling overloading of vehicles. At present, it can be difficult to find sufficient vehicles to transport goods, and this will push up steelmakers' costs and put pressure on their profit margins. Meanwhile, inventories of finished steel, including HDG, are at higher levels, resulting in increased pressure on sellers to conclude sales. It is thought that steelmakers in future may lower their production capacity utilization rates to achieve a better balance between supply and demand. With the National Day Holiday (October 1-7) drawing closer, it is thought that HDG prices in the Chinese domestic market will move on a stable trend during the holiday and will likely edge up later due to higher costs.
Product name | Spec. | Category | City | Steel plant/origin | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
Thick galvanized coils | 1.0 mm x 1,250 mm x C | SGCC | Shanghai | Angang | 3,940 | 591 | ↑40 |
Guangzhou | Angang | 4,070 | 610 | ↑30 | |||
Boxing | Angang | 3,780 | 567 | ↑30 | |||
Average | - | 3,930 | 589 | ↑33 | |||
Thin galvanized coils | 0.5 mm x 1,000 mm x C | SGCC | Shanghai | Quantong | 3,760 | 564 | 0 |
Guangzhou | Ma steel | 3,960 | 594 | ↓10 | |||
Boxing | Hengtong | 3,680 | 552 | ↑10 | |||
Average | - | 3,800 | 570 | 0 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = 6.67 RMB