In the past week, Chinese hot dip galvanized (HDG) prices were mainly stable, only slight increase in Shanghai. As of July 22, average HDG prices in the main Chinese markets are as follows:
Product Name |
Specification |
Category |
Average Price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Thick HDG |
1.0mm x 1,250 mm |
SGCC |
5763 |
+6 |
892 |
+1 |
Thin HDG |
0.5mm x 1,000 mm |
SGCC |
5860 |
0 |
907 |
0 |
On July 22, 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 5,790/mt ($896/mt), RMB 5,950 /mt ($921/mt) and RMB 5,550/mt ($859/mt); meanwhile, the price of SGCC 0.5 mm x 1,000 mm x C stands at RMB 5,630/mt ($872/mt), RMB 6,400/mt ($991/mt) and RMB 5,550/mt ($859/mt) in the above respective markets. These prices include 17 percent VAT ($1 = RMB 6.46).
In the past week, the transaction in China's HDG market were at good level, but traders have remained cautious. While some traders have slightly increased their offers, but the transactions have been concluded at mainstream prices in general. Most traders keep their offers stable and adapt a wait-and-see stance for the time being. On producers' side, iron ore and semi-finished product costs are high, reducing HDG producers' profit magrin. So, producers have low inventory levels in general, and supplies of some specifications are on the short side in the Boxing market. Given demand lacks strength, it is difficult for traders to increase price, which is one of the main reasons why most traders are anxious about high resources prices.