China's hot dip galvanized (HDG) market has indicated a slight upward trend in the past week, with an improvement also seen in the transaction volume. As of April 7, 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 |
5,720 |
+47 |
868 |
+7 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,817 |
+24 |
883 |
+4 |
As of April 7, SGCC 1.0 mm x 1,250 mm x C HDG prices in the Shanghai, Guangzhou, Boxing market are at RMB 5,670/mt ($860/mt), RMB 5,820(mt $883/mt) and RMB 5,670/mt ($860/mt) respectively. Meanwhile, prices of SGCC 0.5 mm x 1,000 mm x C HDG prices are respectively at RMB 5,700/mt ($865/mt), RMB 6,200/mt ($941/mt) and RMB 5,550/mt ($842/mt). These prices include 17 percent VAT ($1 = RMB 6.59).
Having concluded more deliveries in the past week, HDG traders are now under less pressure from their inventories. The uptick in steel futures prices has also had a positive impact on the mood of traders, and has helped boost prices in the HDG spot market.
However, on April 5, China's central bank announced a hike of 0.25 percentage points in the benchmark lending rates of domestic financial institutions, effective from April 6. This is the fourth such hike since October 2010, aimed at curbing inflation in China. This news caused some hesitation among players in the domestic HDG market. Nevertheless, the impact of the rate hike appears to be limited and most traders are cautiously optimistic on the prospects for the market in the coming period.
As market demand is gradually released, China's HDG market is expected to remain on a slightly upward trend in the week ahead.