Sentiment remains positive in Chinese domestic HDG market despite correction

Thursday, 08 September 2016 14:48:46 (GMT+3)   |   Shanghai
During the week ending September 8, the average prices of Chinese domestic hot dip galvanized (HDG) have softened, while overall transaction activity in the market has slackened somewhat, though it is still at medium levels. Average HDG prices in the local Chinese market are presented in the following table. 

During the given week, due to the decreases in ferrous metal futures prices and in hot rolled coil (HRC) and cold rolled coil (CRC) spot prices in China, domestic HDG prices have also moved on a soft trend. However, since inventory levels in the spot market are low, most traders still hold an optimistic view of the future prospects for the domestic HDG market and consider the downward corrections seen in the past week as just normal corrections following the previous rapid price rises. 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

3,900

586

↓20

Guangzhou

Angang

4,040

607

↓110

Boxing

Angang

3,750

563

0

Average

-

3,897

585

↓43

Thin galvanized coils

0.5 mm x 1,000 mm x C

SGCC

Shanghai

Quantong

3,760

565

↑10

Guangzhou

Ma steel

3,970

596

↓60

Boxing

Hengtong

3,670

551

↓10

Average

-

3,800

571

↓20

 
17 percent VAT is included in all prices and all prices are ex-warehouse.
 
$1 = 6.66 RMB
 


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