In the past week, the Chinese hot dip galvanized (HDG) market has generally trended sideways. 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 |
5,767 |
-13 |
905 |
-2 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,857 |
0 |
919 |
0 |
As of September 2, 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 5,800/mt ($911/mt), RMB 5,950/mt ($934/mt) and RMB 5,550/mt ($871/mt); meanwhile, the price of SGCC 0.5 mm x 1,000 mm x C stands at RMB 5,650/mt ($887/mt), RMB 6,360/mt ($998/mt) and RMB 5,560/mt ($873/mt) in the above respective markets. These prices include 17 percent VAT ($1 = RMB 6. 37).
In the Chinese HDG market, mainstream HDG prices have not seen any obvious change. Transactions are not at good levels, with most current purchases from traders rather than from end-users.
Most traders expect that the ex-works prices of mills will not fall dramatically, and so the current situation of ex-works prices being higher than market prices will continue and traders will be not ready to sell cargos at low prices. Currently, domestic inflation is still serious, and so traders are pessimistic about the macroeconomic situation. In September and October, which are traditionally strong months for purchase activity, it may be difficult for demand to rise given high costs and limited interest from end-users. Generally speaking, most traders are adopting a wait-and-see stance towards the future market.
Summing up, it is expected that the Chinese HDG market will not see any major price changes in the coming week.