Inventory on high side in Chinese domestic HDG market after holiday

Thursday, 08 October 2015 15:11:17 (GMT+3)   |   Shanghai
       

During the week ending October 8, Chinese domestic hot dip galvanized (HDG) prices have moved on a stable 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, the local HDG market has moved on a stable trend due to the National Day Holiday (October 1-7). However, some private sector HDG producers in eastern China have decreased their HDG prices by RMB 50-80/mt ($8-13/mt), resulting in some declines in the cost of HDG arriving in the market after the holiday. Meanwhile, the relatively high inventory levels seen after the long holiday will exert strong pressure on HDG prices, forcing HDG traders to lower their sales prices. It is thought that HDG prices in the Chinese domestic market will likely follow a declining trend 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

2,780

438

0

Guangzhou

Angang

3,350

528

0

Boxing

Angang

3,910

616

0

Average

-

3,347

527

0

Thin galvanized coils

0.5 mm x 1,000 mm x C

SGCC

Shanghai

Quantong

2,900

457

0

Guangzhou

Ma steel

3,600

567

0

Boxing

Hengtong

2,900

457

0

Average

-

3,133

493

0

 
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = 6.35 RMB 
 


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