During the past week, Chinese HDG market prices has continued to rise slightly, though transaction activity has been poor. 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 |
5,813 |
+23 |
893 |
+4 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,883 |
+50 |
904 |
+8 |
On May 5, the price of SGCC 1.0 mm x 1,250 mm x C HDG was at RMB 5,820/mt ($894/mt), RMB 5,950/mt ($914mt) and at RMB 5,670/mt ($871/mt) in the Shanghai, Guangzhou and Boxing markets respectively. Meanwhile, prices of SGCC 0.5 mm x 1,000 mm x C HDG were at RMB 5,700/mt ($876/mt) in the Shanghai market, RMB 6,300/mt ($968/mt) in Guangzhou and RMB 5,650/mt ($868/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.51).
In the past week, HDG quotations in the major markets in China have maintained their upward trend, but transactions have been on the scarce side. With producers' spot HDG inventories at low levels lately, prices of certain specifications in the market are quite high. Prices have also been supported by the higher costs in the upstream markets.
Transactions in the Chinese HDG market have lately been slow, partly due to reduced PPGI output levels. On the other hand, since many end-users had prepared sufficient stocks before the Labor Day holiday (April 30-May 2), and also taking into account the current increased HDG prices, purchases from end-users have slowed down to some extent.
In the short term, it appears difficult for China's HDG market to continue its upward trend. Thus, the Chinese HDG market is expected to trend sideways in the coming week.