During the past week the Chinese hot dip galvanized (HDG) market has continued to move in an upward direction. However, traders now hold diverse opinions as regards the likely movement of the market in the coming period. On February 17, 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 |
5,743 |
+63 |
873 |
+10 |
Thin HDG |
0.5mm x 1,000 mm |
SGCC |
5,987 |
+94 |
910 |
+14 |
On February 17, SGCC 1.0 mm x 1,250 mm x C HDG was sold at RMB 5,750/mt ($874/mt), RMB 5,880/mt ($894mt) and at RMB 5,600/mt ($851/mt) in the Shanghai, Guangzhou and Boxing markets respectively. Meanwhile, also on February 17, prices of SGCC 0.5 mm x 1,000 mm x C HDG are at RMB 5,810/mt ($883/mt) in the Shanghai market, RMB 6,400/mt ($973/mt) in Guangzhou and RMB 5,750/mt ($874/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.58).
The Chinese HDG market continued to rise in the past week on the back of steel mills' increased prices and traders' optimism about the future market. As regards the transaction situation, traders report that there have been many inquiries but most actual transactions have been concluded between traders, with end-user demand yet to be released.
After steel futures prices dropped in China, some softening in quotations was observed in the HDG market in China. As a result, some traders are now less optimistic. Some traders are still cautiously optimistic about the future, while others foresee a slight correction in the market.
For the coming week, the Chinese HDG market may see a slight downward price movement.