Slack week for business in HDG market

SteelOrbis Shanghai This week, the HDG market price continued its stable trend. The trading volume was down a little, while market inventories saw little change. In addition, some steel mills released unchanged HDG ex-factory prices during the week. On February 8, 2007, the average market price of 1.0 mm HDG was RMB 5620/mt ($725), unchanged compared with last week; while that of 0.5 mm HDG was RMB 6060/mt ($781), down RMB 10/mt ($1) compared with last weekend. Meanwhile, the average market price of 0.23 mm India BHUSHAN imported HDG was RMB 7333/mt ($946), up RMB 23/mt ($3). During the past week, the HDG market price maintained its steadiness. The trading volume declined slightly, while supplies of HDG to the market were still at a low level. With just ten days left to the China Spring Festival, all across the country many traders have ceased business and gone home for the holiday. Meanwhile, the purchases of downstream customers were also noteworthy for their lack of activity, with the market volume consequently showing a gradual decline. On the other hand, market inventories did not increase greatly: this is due to the huge numbers of people traveling home for the holiday, meaning that the transport of goods is taking a back seat for the time being. The market price did not change on the whole this week. Some steel mills have announced plans to overhaul their production lines during the Spring Festival. The ex-factory prices for HDG released by some mills this week, including Angang, Benxi Steel and WISCO, all continued unchanged, and so did not have any influence on the HDG market. Also this week, the domestic zinc price was RMB 33,500/mt ($4,505), down RMB 1,500/mt ($194). Looking forward to the week ahead, the market price of HDG is expected to continue to maintain its stable trend.