During the past week, the Chinese hot dip galvanized (HDG) market has maintained its strength. As of December 9, the average prices in the main Chinese HDG markets 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 |
5,413 |
+13 |
814 |
+2 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,563 |
0 |
837 |
0 |
On December 9, the price of SGCC 1.0 mm x 1,250 mm x C HDG was at RMB 5,390/mt ($811/mt), RMB 5,630/mt ($847mt) and at RMB 5,220/mt ($785/mt) in the Shanghai, Guangzhou and Boxing markets respectively. Meanwhile, also on December 9, prices of SGCC 0.5 mm x 1,000 mm x C HDG were at RMB 5,490/mt ($826/mt) in the Shanghai market, RMB 5,800/mt ($872/mt) in Guangzhou and RMB 5,400/mt ($812/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.65).
During the past week, prices in the Chinese HDG market price remained strong, with some small increases observed, and delivery levels were good. The average daily delivery volume of the main sellers in the market was above 400 mt. Influenced by expectations of price increases, HRC and CRC, rebar and HDG prices in the Chinese market all saw upticks. Rebar and HRC prices registered the biggest increases.
New arrivals in the market during the past week were not at very significant levels, due to the influence of government policy aimed at saving energy and reducing emissions. Traders have not experienced much pressure from inventory and in general there has not been any dumping of low-priced materials in the market.
At present, most traders consider that prices are supported by costs and that thus there is limited potential for downward price movement. Most traders think that the time to build up their inventories has not yet arrived and so most of them are maintaining a wait-and-see stance towards the market.
Generally speaking, there is limited roon for downward movement in China's HDG market and traders are expecting a rising trend in the future; however, as market demand is not so strong, prices are not likely to register any big increase in the coming week.