Following the May Day holiday (May 1-3), HDG prices have seen no big changes in the north and south of China but have trended up wildly in other regions. On the end-users' side, most buyers have started to adopt a wait-to-see approach with low tonnages being purchased. As of May 6, the average prices of HDG in the main Chinese cities 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 | 5,560 | -23 | 815 | -3 |
Thin HDG | 0.5 mm x 1,000 mm | SGCC | 5,800 | +13 | 850 | +2 |
Compared with the pre-holiday period, domestic HDG prices have seen no big changes in the northern and southern markets, but have soared up significantly in the eastern Boxing market. Currently, the HDG market for thick specifications is gradually improving, while the transaction volume for thin specifications has declined compared with the pre-holiday period.
Before the holiday, the domestic HDG market was sluggish as most traders were mainly digesting their own inventories. During the holiday, with buying activities increasing, HDG prices registered big increases in the Boxing market. However, end-users then halted their purchasing activity after prices rose.
As prices keep climbing, given that market inventory is still at low levels, traders have regained their confidence and have ordered more materials from the mills. Since late April, Tangshan-based Hengtong Steel has raised its shipments of HDG products to the northern region. However, overall market inventory in the north is still below normal levels.
On April 30, Shenzhen-based Sino Master Steel Sheet hiked its price of HDG by RMB 200/mt ($29/mt). In addition, Guangdong-based Huaguan Steel has announced a reduction in price, as previously it had frequently raised its prices.