During the past week the Chinese hot dip galvanized (HDG) market has continued to drop slightly, while the market transaction situation has been unsatisfactory. On November 25, the HDG prices in the major Chinese markets are as follows:
Product Name |
Specification |
Category |
Average Price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Thick HDG |
1.0mm x 1,250 mm |
SGCC |
5,387 |
-16 |
810 |
-2 |
Thin HDG |
0.5mm x 1,000 mm |
SGCC |
5,560 |
-27 |
836 |
-4 |
On November 25, the price of SGCC 1.0 mm x 1,250 mm x C HDG was at RMB 5,360/mt ($806/mt), RMB 5,600/mt ($842mt) and at RMB 5,200/mt ($782/mt) in Shanghai, Guangzhou and Boxing markets respectively. Meanwhile, also on November 25, prices of SGCC 0.5 mm x 1,000 mm x C HDG were at RMB 5,500/mt ($827/mt) in the Shanghai market, RMB 5,800/mt ($872/mt) in Guangzhou and RMB 5,380/mt ($809/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.65).
During the past week, market transactions have been scarce, with market prices dropping slightly. Demand for HDG has been weak, and other pressures also exist. On the one hand, sales of HRC and CRC have not been satisfactory, and this has influenced the attitude of traders. On the other hand, as banks reduce money supply at the end of the year, some traders face pressure from shortages of capital.
Some traders lack money coming towards the end of the year, and so they are selling products in order to bring in cash; at the same time, other traders are seeking to buy materials at low prices at present, planning to sell them in Q1 next year.
Generally speaking, the prices of iron ore, coking coal and semi-finished steel are strong. Thus, steel prices are supported by costs, and so in the short term there is limited room for the downward movement of steel prices. At the same time, a note of uncertainty is added to the market by central government policy.
For the coming week, it is expected that the Chinese HDG market will fluctuate slightly.