In the past week, Chinese hot dip galvanized (HDG) prices have generally trended sideways, with some slight fluctuations. As of August 11, average HDG prices in the main 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 |
5,770 |
+3 |
902 |
+0.4 |
Thin HDG |
0.5mm x 1,000 mm |
SGCC |
5,857 |
-3 |
915 |
-0.4 |
On August 11, 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 5,810/mt ($908/mt), RMB 5,950 /mt ($930/mt) and RMB 5,550/mt ($867/mt); meanwhile, the price of SGCC 0.5 mm x 1,000 mm x C stands at RMB 5,650/mt ($883/mt), RMB 6,360/mt ($994/mt) and RMB 5,560/mt ($869/mt) in the above respective markets. These prices include 17 percent VAT ($1 = RMB 6. 40).
In the past week, traders in the main Chinese HDG markets have been cautious about booking, preferring to adopt a wait-and-see stance. The reduction in the US' credit rating has impacted the Chinese steel futures market, and so some prices have softened in the Chinese HDG market.
HDG prices have been high in past months in China, and so domestic mills have been more active in HDG production. At the same time, there has been a slight recovery in production in the domestic household appliance and automotive industries. As a result, HDG demand in China may be stimulated to some extent.
Summing up, it is expected that there will not be significant room for a decline in the Chinese HDG market in the short term and that the market will continue to trend sideways in the coming week.