Prices in the Chinese hot dip galvanized (HDG) market indicate just some slight increases as compared to one week ago, while traders are now less optimistic. As of April 21 2011, the average prices in Chinese HDG market 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 | 5,773 | 0 | 883 | 0 |
Thin HDG | 0.5 mm x 1,000 mm | SGCC | 5,833 | +6 | 892 | +1 |
HDG traders in China felt optimistic at the start of the past week, as the influence of the steel futures market on spot market prices weakened. However, after the major domestic steelmakers announced price reductions in their price lists for May production, traders went into wait-and-see mode and market activity slowed down because of lack of confidence in the future.
Quite a few new HDG lines have been put into operation in China this year, and it has been remarked that many of the new lines are offering prices at RMB 30-40/mt ($4-6/mt) lower than older production lines. In this context, prices in the Chinese HDG market do not appear likely to move up. Unsatisfactory demand from end-users and the wait-and-see attitude of traders also constitute resistance to the upward movement of prices in the future.
To sum up, the Chinese HDG market is expected to follow a stable trend in the coming week.