During the past week, the Chinese hot dip galvanized (HDG) market was still in depression and market prices fluctuated downward. Traders are worried that a large amount of products will arrive during the National Day holiday period and that this will put pressure on them.
Product Name |
Specification |
Category |
Average Price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Thick HDG |
1.0 mm x 1,250 mm |
SGCC |
5,447 |
-3 |
814 |
0 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,577 |
-13 |
834 |
-2 |
In the Shanghai market on September 30, the price of SGCC 1.0 mm x 1,250 mm x C HDG was at RMB 5,290/mt ($791/mt). The same product was sold on this date at RMB 5,650/mt ($845mt) in the Guangzhou market and at RMB 5,400/mt ($807/mt) in the Boxing market. Meanwhile, also on September 30, prices of SGCC 0.5 mm x 1,000 mm x C HDG were at RMB 5,430/mt ($812/mt) in the Shanghai market, RMB 5,700/mt ($852/mt) in Guangzhou and RMB 5,600/mt ($837/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.69).
During the past week, HDG market prices initially rose but, when end-users were observed not to be active in the market any longer, prices fell again. Traders are not optimistic about the prospects for price increases in the coming period. As market transactions slowed down, many traders lowered their prices. Also because of the National Day holiday, traders are seeking to deliver products in order to avoid pressure from possible high inventories in the future. All these factors contributed to the downtrend in the Chinese HDG market.
Generally speaking, the future development of the Chinese HDG market depends on end-user demand and the inventory situation.