During the past week, the Chinese hot dip galvanized (HDG) market maintained its upward movement. Although the transaction volume was not great, traders were still relatively confident . On January 20, 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 |
1.0mm x 1,250 mm |
SGCC |
5,587 |
+30 |
849 |
+5 |
Thin HDG |
0.5mm x 1,000 mm |
SGCC |
5,817 |
+17 |
884 |
+3 |
On January 20, the price of SGCC 1.0 mm x 1,250 mm x C HDG was sold at RMB 5,610/mt ($853/mt), RMB 5,750/mt ($874mt) and at RMB 5,400/mt ($821/mt) in the Shanghai, Guangzhou and Boxing markets respectively. Meanwhile, also on January 20, the prices of SGCC 0.5 mm x 1,000 mm x C HDG were at RMB 5,650/mt ($859/mt) in the Shanghai market, RMB 6,250/mt ($950/mt) in Guangzhou and RMB 5,550/mt ($843/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.58).
HDG traders start to withdraw from market ahead of holiday
The Chinese HDG market continued its upward trend in the past week, but the transaction volume has been on the weak side. Most traders have decent levels of inventories in hand. As hot rolled coil (HRC) prices are increasing, most HDG traders are not inclined to sell before the Spring Festival/Chinese New Year holiday. At present, some HDG traders have withdrawn from the market. Some traders considered that after the Spring Festival there may be insufficient support for further HRC price increases.
For the coming week, it is expected that HDG prices in China will maintain their strength, though there will not be many transactions concluded in the market.