During the week ended October 20, hot dip galvanized (HDG) prices in the local Chinese market have dropped down sharply. As of October 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 |
1.0 mm x 1,250 mm |
SGCC |
5,403 |
-224 |
850 |
-35 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,627 |
-156 |
885 |
-25 |
As of October 20, 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 5,270 /mt ($829/mt), RMB 5,590/mt ($879/mt) and RMB 5,350/mt ($841/mt); meanwhile, the price of SGCC 0.5 mm x 1,000 mm x C stands at RMB 5,530/mt ($869/mt), RMB 6,050/mt ($951/mt) and RMB 5,300/mt ($833/mt) in the above respective markets. These prices include 17 percent VAT ($1 = RMB 6.36).
At present, inventory in the main HDG markets in China is at high levels due to ongoing weak demand. Secondly, mills have cut their prices sharply, while, thirdly, market players are under financial strain. Accordingly, downstream users continue to maintain a wait-and-see stance, and transactions are few. Some traders with high inventories are under strong pressure to increase their shipments. In this overall context, China's HDG market has recorded a strong fall in the past week.
According to the data released by the China Iron and Steel Association (CISA), average daily crude steel output of CISA member companies totaled 1,639,700 mt in late September, increasing by 0.61 percent as compared to the same period of August. Therefore, steel supplies are still at high levels in China.
In its price policy for November, Liaoning Province-based Chinese steel producer Benxi Iron and Steel has cut its HDG price by RMB 550/mt ($86.5/mt).
Overall, it is expected that market prices of HDG in China will continue to follow a downward trend in the coming week.