During the week ending November 10, hot dip galvanized (HDG) steel prices in the Chinese domestic market have continued to trend down amid ongoing sluggish demand. Accordingly, traders lack optimism as regards the prospects for the market in the coming period. As of November 10, the average HDG prices in the main markets in China were 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 |
5,183 |
-64 |
819 |
-10 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,313 |
-70 |
839 |
-11 |
As of November 10, 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 5,120/mt ($809/mt), RMB 5,330/mt ($842/mt) and RMB 5,150/mt ($806/mt); meanwhile, the price of SGCC 0.5 mm x 1,000 mm x C stands at RMB 5,230/mt ($826/mt), RMB 5,850/mt ($924/mt) and RMB 4,860/mt ($768/mt) in the above respective markets. These prices include 17 percent VAT ($1 = RMB 6. 33).
The mainstream prices in the Chinese domestic HDG market have been decreasing over a long period, and most of the traders' HDG inventories were purchased before the price decreases. Accordingly, traders are reluctant to make further reductions in their prices before the new price policies due to be issued by the steel mills. Meanwhile, the softening of prices in the domestic market has not had a positive effect on demand. With the traditional off-season for demand having arrived, orders from downstream mills' are fewer than before, resulting in a reduction in HDG demand.
Overall, with weakening demand and traders' purchasing prices higher than the current market prices, the HDG transaction volume is on the low side and traders feel helpless. Traders are likely to come under increasing pressure from high inventory due to arrivals of new supplies.
It is expected that HDG prices in China will continue to go down in the coming week.