During the week ending August 26, the Chinese hot dip galvanized (HDG) market has been quiet with few transactions observed. Meanwhile, prices have slipped down by differing degrees depending on traders. As of August 26, average HDG prices in the major Chinese regions are as follows:
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Thick HDG | 1.0 mm x 1,250 mm | SGCC | 5,303 | -30 | 780 | -4 |
Thin HDG | 0.5 mm x 1,000 mm | SGCC | 5,510 | - | 810 | - |
In the Shanghai market, the price of SGCC 1.0 mm x 1,250 mm x C HDG is now at RMB 5,080/mt ($747/mt). The same product is sold at RMB 5,580/mt ($821/mt) in the Guangzhou market and at RMB 5,250/mt ($772/mt) in the Boxing market. Meanwhile, prices of SGCC 0.5 mm x 1,000 mm x C HDG stand at RMB 5,430/mt ($799/mt) in the Shanghai market, at RMB 5,550/mt ($816/mt) in Guangzhou and at RMB 5,550/mt ($816/mt) in the Boxing market.
Influenced by the drop in the domestic steel futures market as well as by the price softenings in local hot and cold rolled coil markets, many traders have become eager to sell off their stock materials and are willing to negotiate depending on order size. On the mills' side, as the inventories of domestic mills are now at a low level. Meanwhile, it must be said that market prices of HDG products have not registered any big decreases.
Most sellers are looking forward to the traditionally busy season in September and October. Given the low booking prices for August, it is expected that there will hardly be any increases in the market in the near future.