During the past week, the Chinese hot dip galvanized (HDG) market in general has continued to be characterized by weakness. 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 |
5,673 |
+10 |
866 |
+2 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,793 |
-80 |
884 |
-12 |
On March 31, the price of SGCC 1.0 mm x 1,250 mm x C HDG was at RMB 5,650/mt ($863/mt), RMB 5,750/mt ($878mt) and at RMB 5,620/mt ($858/mt) in the Shanghai, Guangzhou and Boxing markets respectively. Meanwhile, also on March 31, prices of SGCC 0.5 mm x 1,000 mm x C HDG were at RMB 5,700/mt ($870/mt) in the Shanghai market, RMB 6,200/mt ($947/mt) in Guangzhou and RMB 5,480/mt ($837/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.55).
During the past two weeks, the Chinese HDG market has continued to remain weak. Support for HDG price hikes in the main Chinese cities has been insufficient, while a strong price drop has also been unlikely. At present, the low-priced materials in the market have been digested to a certain degree, while higher-priced materials are expected to arrive in late April. Costs provide support for market prices, but, taking into account fluctuations in prices of hot rolled coil (HRC) and other products, it may be difficult for HDG prices to increase.
As the weather gets warmer, the traditional high season for business is approaching; however, steel mills' deliveries are decreasing - influenced by government measures regulating energy consumption per unit of GDP. Traders are currently maintaining a wait-and-see approach to market activities amid increasing demand, decreasing supply, and other factors such as availability of funds.
The trend of the Chinese HDG market trend in the coming period will depend on the release of demand. For the coming short-term period, no massive increases or decreases are anticipated.