During the week ending December 20, hot dip galvanized (HDG) prices in the Chinese domestic market have mostly shown a soft trend, though some increases have also been seen. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
While China's HDG market has mostly moved on a slight downtrend in the past week, some traders increased their offer prices for materials in short supply by RMB 30/mt ($4/mt). Over the past week, domestic steelmakers Angang, Shougang and Benxi Iron & Steel issued their products prices for January delivery. Angang and Benxi Iron & Steel have kept their prices unchanged, with Angang's ex-works price of St01Z 1.0 mm at RMB 4,450/mt ($708/mt) and Benxi's ex-works price of St01Z 1.0 mm x 1,250 mm x C at RMB 4,600/mt ($732/mt). Meanwhile, Shougang has raised its ex-works price of HDG by RMB 50/mt ($7/mt), with its price of DX51D+Z 1.0 mm x 1,250 mm at RMB 4,610/mt ($734/mt).
It is estimated that the cost to traders of Angang's HDG delivered to Shanghai is RMB 4,880/mt ($777/mt), while the cost to traders of Shougang's HDG delivered to Shanghai is RMB 4,890-4,900 ($778-780/mt).
Overall, amid increased costs of HDG supplies, traders are reluctant to book material, mostly maintaining a wait-and-see attitude instead. It is expected that the Chinese HDG market will continue its soft trend in the coming week.