During the past week the Chinese hot dip galvanized (HDG) market has continued to rise in a context of low market supplies and weak market demand. As of December 16, the average prices in the major 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 |
5,423 |
+10 |
814 |
+2 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,583 |
+20 |
838 |
+3 |
On December 16, the price of SGCC 1.0 mm x 1,250 mm x C HDG was sold at RMB 5,400/mt ($811/mt), RMB 5,650/mt ($848mt) and at RMB 5,220/mt ($784/mt) in Shanghai, Guangzhou and Boxing markets respectively. Meanwhile, also on December 16, prices of SGCC 0.5 mm x 1,000 mm x C HDG were at RMB 5,500/mt ($826/mt) in the Shanghai market, RMB 5,850/mt ($878/mt) in Guangzhou and RMB 5,400/mt ($811/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.66).
During the past week, HDG prices in the main Chinese markets such as Shanghai, Guangzhou and Boxing continued their uptrend. Influenced by shortages of supplies and Baosteel's new prices, traders looked forward to a rising price trend. However, at the same time, downstream demand was limited somewhat by cold weather conditions. The actual transaction situation has not been good. Some downstream buyers have reported high inventory levels. Some traders have expressed the view that there is insufficient support for a continuation of the rising trend in the market.
As the port of Boyuquan in northern China has been closed due to heavy snow, northern steelmakers such as Angang Steel and Benxi Iron and Steel have been unable to deliver supplies quickly to the south. It is expected that supplies to the south will increase as the weather gets warmer.
Influenced by high costs and the rising prices of other steel products, HDG prices are expected to fluctuate upward in China in the coming week. Inventory and demand will continue to be key factors in the market.