HDG prices see slight increase

SteelOrbis Shanghai This week, the hot dip galvanized market price in China saw a slight increase. Regarding the trading volume and market inventories, not much change was seen compared with the previous week. Also, some steel mills released new ex-factory prices for HDG. On January 11, 2007, the average market price of 1.0 mm HDG was RMB 5,610/mt ($720/mt), up RMB 33/mt ($4/mt) compared with a week earlier; while that of 0.5 mm HDG is RMB 6,030/mt ($774/mt), up RMB 80/mt ($10/mt) compared with the price last weekend. Meanwhile, the average market price of 0.23 mm HDG imported from Indian Bhushan company remains unchanged at RMB 7,200/mt ($924/mt). As we have remarked, this week's slight HDG market price increase was accompanied by unchanged trading volume and market inventory levels. Looking at the overall market situation, the price increase of HDG in the eastern Chinese city of Boxing pushed the average price of Chinese HDG higher. With the long-standing low HDG market inventory and the rise in downstream demand, traders all increased their selling prices. However, the traders are also expressing less optimism about the prospects for the future market. Meanwhile, steel mills recently began to increase their ex-factory prices for HDG. For example this week, the new ex-factory price of Benxi Steel HDG increased by RMB 50/mt ($6/mt), while Angang's HDG price remained unchanged. The domestic zinc price during the week was RMB 35,000/mt ($4,492/mt), down RMB 1,000/mt ($128/mt) compared with the previous week. For next week, the HDG market price is expected to maintain its stable trend with another slight increase predicted.