During the week ending August 18, the average prices of Chinese domestic hot dip galvanized (HDG) have continued their upward trend, while overall transaction activity in the market has remained at low levels. Average HDG prices in the local Chinese market are presented in the following table.
During the given week, HDG prices have indicated a rising trend, with sharp rises seen in particular for thin specifications in the local Boxing market. Major Chinese steelmakers Wuhan Iron and Steel, Baosteel and Shougang have respectively raised their HDG ex-works prices for September delivery by RMB 150 ($22.5/mt), RMB 100/mt ($15/mt) and RMB 50/mt (7.5/mt), which will provide support for HDG prices in the spot market. However, ferrous metal futures prices have indicated downward corrections in the last two trading days, and the domestic finished steel market may be negatively impacted if such corrections continue to be observed. It is thought that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
| Product name | Spec. | Category | City | Steel plant/origin | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
| Thick galvanized coils | 1.0 mm x 1,250 mm x C | SGCC | Shanghai | Angang | 3,710 | 560 | 0 |
| Guangzhou | Angang | 4,150 | 626 | ↑50 | |||
| Boxing | Angang | 3,690 | 557 | 0 | |||
| Average | - | 3,850 | 581 | ↑16 | |||
| Thin galvanized coils | 0.5 mm x 1,000 mm x C | SGCC | Shanghai | Quantong | 3,590 | 541 | ↑10 |
| Guangzhou | Ma steel | 4,020 | 606 | ↑120 | |||
| Boxing | Hengtong | 3,580 | 540 | ↑220 | |||
| Average | - | 3,730 | 563 | ↑116 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = 6.63 RMB