HDG market slows down ahead of Spring Festival

This week the HDG market price did not see any change compared with the previous week. The trading volume was down to some extent, while market inventories remained stable. On February 15, 2007, the average market price of 1.0 mm HDG was RMB 5620/mt ($725), that of 0.5 mm HDG was RMB 6060/mt ($782), while the average market price of 0.23 mm India BHUSHAN imported HDG was RMB 7333/mt ($946). All these prices are unchanged compared with the levels of last weekend. This week was the last week before the Spring Festival. Many traders closed their businesses and went home for the holiday. Others only did business with their regular customers. As a result, the trading volume dropped to some extent compared with last week. Because great numbers of people are going back home for the holiday, the passenger volume being carried by the country's transport system has seen a huge upsurge. This has meant that there has been less room available for the transport of cargo. The market inventories of HDG did not change much compared with last week, while HDG market prices also remained stable. Due to the ongoing rumors that China is soon to reduce its export tax rebate, the quoted price of China HDG for export increased slightly, with 1.0 mm HDG being quoted at around $740-780/mt FOB. However, it is not clear whether overseas customers will accept this price level. No activity is expected in the market next week due to China's traditional Spring Festival. This week, the domestic zinc price was RMB 33,500/mt ($4,505), unchanged compared with the previous week.