During the week ending August 29, average prices in the Chinese domestic hot dip galvanized (HDG) market have moved down, while transaction activity in the market has been at low levels. Average HDG prices in the local Chinese market are presented in the following table.
Product name |
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Thick HDG |
1.0 x 1,250 |
SGCC |
4,683 |
-53 |
660 |
-8 |
Thin HDG |
0.5 x 1,000 |
SGCC |
4,836 |
-53 |
682 |
-8 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, HRC futures prices at Shanghai Futures Exchange (SHFE) have moved down, negatively affecting the domestic HDG market. Meanwhile, bearish sentiment has prevailed among market players due to the escalation of US-China trade tensions, the depreciation of the Chinese currency and the declining trend of iron ore prices. Although environmental protection measures will curb production, demand from downstream users has also been negatively influenced. It is expected that HDG prices in the Chinese domestic market will likely just fluctuate within a limited range in the coming week as demand may improve to some degree as the traditional peak season of September begins.
$1 = RMB 7.09