During the week ending July 23, Chinese domestic hot dip galvanized (HDG) prices have moved on a downward 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 table below.
During the given week, since demand for HDG products has remained slack in the Chinese domestic market, local traders have cut their offer prices to stimulate sales activity. Meanwhile, major Chinese steelmaker Wuhan Iron and Steel (WISCO) has decreased its ex-works prices for HDG by RMB 80/mt ($13/mt) for August delivery, exerting a negative impact on HDG prices in the spot market. In addition, approaching the end of the month, liquidity has become tighter among traders and so they are more eager to speed up their sales activities. It is thought that HDG prices in the Chinese domestic market will likely continue their downtrend in the coming week.
Product name | Spec. | Category | City | Steel plant/origin | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
Thick galvanized coils | 1.0 mm x 1,250 mm x C | SGCC | Shanghai | Angang | 2,950 | 475 | ↓130 |
Guangzhou | Angang | 3,550 | 572 | ↓50 | |||
Boxing | Angang | 3,910 | 630 | ↓20 | |||
Average | - | 3,470 | 559 | ↓67 | |||
Thin galvanized coils | 0.5 mm x 1,000 mm x C | SGCC | Shanghai | Quantong | 3,000 | 483 | ↓150 |
Guangzhou | Ma steel | 3,600 | 580 | 0 | |||
Boxing | Hengtong | 3,100 | 499 | ↓100 | |||
Average | - | 3,233 | 521 | ↓83 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.21