The Chinese hot dip galvanized (HDG) market has fluctuated in an upward direction in the past week. On December 2, average HDG prices in the main markets in China are as follows:
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 |
5,400 |
+13 |
810 |
+2 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,563 |
+3 |
834 |
+0.4 |
On December 2, the price of SGCC 1.0 mm x 1,250 mm x C HDG stands at RMB 5,380/mt ($807/mt), RMB 5,600/mt ($840mt) and at RMB 5,220/mt ($783/mt) in the Shanghai, Guangzhou and Boxing markets respectively. Meanwhile, also on December 2, prices of SGCC 0.5 mm x 1,000 mm x C HDG are at RMB 5,490/mt ($823/mt) in the Shanghai market, RMB 5,800/mt ($870/mt) in Guangzhou and RMB 5,400/mt ($810/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.67).
During the past week, high costs provided support for the prices of new supplies and so there were few low-priced supplies available for traders to buy. New arrivals were not very plentiful. Some categories were in short supply such as 1.0 mm HDG, and so these categories had higher prices. Most market demand came from traders. Demand from end-users showed some improvement, though most end-users maintained a wait-and-see stance.
Traders have diverse expectations about the future. Some traders think the high costs of raw material will support the HDG market and that the market is unlikely to register a decrease. Other traders consider that, with demand at weak levels, prices are unlikely to increase either.
It is expected China's HDG market will just register slight fluctuations in the coming week.