Rising inventory impacts Chinese domestic HDG market

Thursday, 25 June 2015 14:23:11 (GMT+3)   |   Shanghai
       

During the week ending June 25, Chinese domestic hot dip galvanized (HDG) prices have been almost stable, just softening very slightly, while overall transaction activity in the market is still at low levels. Average HDG prices in the local Chinese market are presented in the table below.
                                                                                                                                           
During the given week, the Chinese domestic HDG market has come under pressure from slack demand due to high temperatures and rainy weather. In these conditions, HDG inventory levels have continued to rise. Big traders state that their sales volumes are only 80 percent of their normal levels. In order to reduce their inventories, traders will likely cut their prices in order to speed up their sales. It is expected that HDG prices in the Chinese domestic market will continue their slight 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

3,410

549

↓20

Guangzhou

Angang

3,600

580

0

Boxing

Angang

3,930

633

0

Average

-

3,647

587

↓7

Thin galvanized coils

0.5 mm x 1,000 mm x C

SGCC

Shanghai

Quantong

3,260

525

↓20

Guangzhou

Ma steel

3,600

580

0

Boxing

Hengtong

3,200

515

0

Average

-

3,353

540

↓7

17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.21


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