During the week ending May 12, Chinese domestic hot dip galvanized (HDG) prices have indicated an overall downward trend. Overall transaction activity in the market has weakened and is now at low levels. Average HDG prices in the local Chinese market are presented in the following table.
During the given week, due to declines seen in prices of hot rolled coil (HRC) and cold rolled coil (CRC), domestic HDG prices have also decreased. Traders are willing to sell at reduced prices in order to bring in cash. Major domestic steelmaker Wuhan Iron and Steel Group (WISCO) has issued its ex-works prices for June delivery, raising its HDG prices by RMB 300/mt ($46/mt), which will likely provide a certain degree of support for HDG prices. However, demand for HDG has slackened in this month, while supply has increased, exerting a negative impact on HDG prices. It is thought that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
| Product name | Spec. | Category | City | Steel plant/origin | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
| Thick galvanized coils | 1.0 mm x 1,250 mm x C | SGCC | Shanghai | Angang | 4,210 | 647 | ↓370 |
| Guangzhou | Angang | 4,100 | 630 | ↓350 | |||
| Boxing | Angang | 3,630 | 558 | ↓310 | |||
| Average | - | 3,980 | 611 | ↓343 | |||
| Thin galvanized coils | 0.5 mm x 1,000 mm x C | SGCC | Shanghai | Quantong | 4,010 | 616 | ↓90 |
| Guangzhou | Ma steel | 4,400 | 676 | ↑100 | |||
| Boxing | Hengtong | 3,270 | 502 | ↓350 | |||
| Average | - | 3,894 | 598 | ↓113 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = 6.51 RMB