Chinese hot dip galvanized (HDG) market posted an increase at the start of the past week, but then started to decline under the weight of increased inventories.
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 | 5,443 | 0 | 819 | 0 |
Thin HDG | 0.5mm x 1,000 mm | SGCC | 5,623 | -30 | 846 | -5 |
In the Shanghai market on October 14, the price of SGCC 1.0 mm x 1,250 mm x C HDG is at RMB 5,350/mt ($805/mt). The same product was sold on this date at RMB 5,600/mt ($842mt) in the Guangzhou market and at RMB 5,380/mt ($809/mt) in the Boxing market. Meanwhile, also on October 14, prices of SGCC 0.5 mm x 1,000 mm x C HDG are at RMB 5,610/mt ($844/mt) in the Shanghai market, RMB 5,700/mt ($857/mt) in Guangzhou and RMB 5,560/mt ($836/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.65).
After the National Day holiday (October 1-7), HDG market prices in China increased and the transaction situation was better than in the month of September. However, arrivals of new supplies began to accumulate and so traders' doubts about the future market began to increase. Some traders considered that further prices increases were difficult though they thought that there was also limited room for price decreases; meanwhile, other traders considered that, due to the exchange rate adjustment and inflation in China, and also due to rising raw material prices, steel prices could still increase in the future.
Market insiders think that prices will not drop further and it is thought that the HDG market in China will follow a stable trend in the coming week.