In the past week, the Chinese hot dip galvanized (HDG) market has generally moved sideways, though with some slight decreases seen. The 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 |
5,753 |
-10 |
902 |
-2 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,873 |
0 |
921 |
0 |
As of September 16, the price of SGCC 1.0 mm x 1,250 mm x C galvanized products in the markets of Shanghai, Guangzhou and Boxing respectively stands at RMB 5,770/mt ($904/mt), RMB 5,940 /mt ($931/mt) and RMB 5,550/mt ($870/mt); meanwhile, the price of SGCC 0.5 mm x 1,000 mm x C stands at RMB 5,700/mt ($893/mt), RMB 6,360/mt ($997/mt) and RMB 5,560/mt ($871/mt) in the above respective markets. These prices include 17 percent VAT ($1 = RMB 6. 38).
In the Chinese HDG market, transaction activity has been at a low level. Scarcity of large deals has placed some pressure on HDG traders. Although upstream raw material costs have remained stable and major mills have increased their ex-works prices, the softness of HDG prices has continued to discourage traders. Facing mills' price increases and low downstream demand, HDG traders in China are not optimistic on the prospects for the future market. Meanwhile, there are also negative factors in the market: domestic economic growth has continued to slow down, while China still faces large inflationary pressure, and it is expected future tightening of China's monetary policy will exert great pressure on availability of funds.
Summing up, it is thought that the Chinese HDG market will trend sideways in the coming week.