In the past week, the Chinese hot dip galvanized (HDG) prices moved on a slight upward trend. Some specifications which are in short supply have increased by RMB 10-20mt ($1.55-3.10/mt) week on week. As of August 4, average HDG prices in the main Chinese markets are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Thick HDG |
1.0 mm x 1,250 mm |
SGCC |
5767 |
+4 |
895 |
+0.6 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5860 |
+7 |
910 |
+1 |
On August 4, 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 5,820/mt ($904/mt), RMB 5,930 /mt ($921/mt) and RMB 5,550/mt ($862/mt); meanwhile, the price of SGCC 0.5 mm x 1,000 mm x C stands at RMB 5,650/mt ($877/mt), RMB 6,380/mt ($991/mt) and RMB 5,550/mt ($862/mt) in the above respective markets. These prices include 17 percent VAT ($1 = RMB 6. 44).
Driven by the domestic steel futures market, China's CRC market has slightly increased in the past week. However, considering that the price margin between CRC and HDG may lead to an increase in HDG prices, domestic HDG traders are adopting a wait-and-see stance.
Meanwhile, many provinces and cities in China are experiencing power shortages, and steel plants are affected. It is reported that coating plants in the provinces of Jiangsu and Zhejiang have cut back their operations, and this has greatly affected production. If the power shortages become serious, they will help push up HDG prices. It is expected the spot prices of Baosteel for September will increase, and so players are optimistic on the prospects for the HDG market in China in the coming period.
Summing up, it is expected that China's HDG market will trend upward slightly in the coming period.