During the week ending August 4, the average prices of Chinese domestic hot dip galvanized (HDG) have continued their upward trend, while overall transaction activity in the market has remained at low levels. Average HDG prices in the local Chinese market are presented in the following table.
During the given week, Wuxi-based Chinese HDG and PPGI producer Zhongcai Group has raised its HDG ex-works prices by RMB 200/mt ($30/mt), exerting a positive impact on HDG prices in the spot market. Meanwhile, Shagang Group has increased its HRC ex-works prices by RMB 200/mt ($30/mt), resulting in increased support for HDG prices from the cost side. In addition, environmental protection examinations at major steelmakers and the coming G20 Summit will result in some reductions in production and in supply. On the other hand, in the last two trading days, ferrous metal futures prices in China have indicated declines, which may weaken the bullish sentiment among HDG market players. It is thought that HDG prices in the Chinese domestic market will edge up slightly in the coming week.
| Product name | Spec. | Category | City | Steel plant/origin | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
| Thick galvanized coils | 1.0 mm x 1,250 mm x C | SGCC | Shanghai | Angang | 3,670 | 553 | ↑50 |
| Guangzhou | Angang | 4,050 | 610 | ↑270 | |||
| Boxing | Angang | 3,690 | 556 | ↑80 | |||
| Average | - | 3,804 | 573 | ↑134 | |||
| Thin galvanized coils | 0.5 mm x 1,000 mm x C | SGCC | Shanghai | Quantong | 3,530 | 532 | ↑60 |
| Guangzhou | Ma steel | 3,850 | 580 | ↑50 | |||
| Boxing | Hengtong | 3,230 | 486 | ↑80 | |||
| Average | - | 3,537 | 533 | ↑63 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = 6.64 RMB