Sentiment in Chinese domestic HDG market impacted by corrections in futures

Thursday, 17 November 2016 13:51:35 (GMT+3)   |   Shanghai
       

During the week ending November 17, average Chinese domestic hot dip galvanized (HDG) prices have continued their rising trend, while overall transaction activity in the market has been at low-to-medium levels. Average HDG prices in the local Chinese market are presented in the table below.

During the week in question, domestic HDG prices have continued to move up with the support of rises in raw material prices. However, given the higher price levels, downstream users have been more cautious about concluding purchases, resulting in low-to-medium transaction activity. Starting from November 14, ferrous metal futures prices have indicated downward corrections, exerting a negative impact on sentiment in the HDG market. It is thought that HDG prices in the Chinese domestic market will likely move sideways or edge down slightly in the coming week as traders may be willing to sell following the price increases already recorded in the market.

 

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

4,540

661

120

Guangzhou

Angang

4,470

651

80

Boxing

Angang

4,050

590

50

Average

-

4,353

634

83

Thin galvanized coils

0.5 mm x 1,000 mm x C

SGCC

Shanghai

Tangsteel

4,320

629

80

Guangzhou

Guofeng

4,300

626

90

Boxing

Fengming

3,960

576

10

Average

-

4,193

610

60

17 percent VAT is included in all prices and all prices are ex-warehouse.
 
$1 = 6.87 RMB


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