During the past week the Chinese hot dip galvanized (HDG) market has trended downward in a context of weak demand. Traders are not optimistic about the prospects for the future market.
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 |
5,387 |
-43 |
805 |
-6 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,543 |
-40 |
829 |
-6 |
In the Shanghai market on October 28, the price of SGCC 1.0 mm x 1,250 mm x C HDG was at RMB 5,310/mt ($794/mt). The same product was sold on this date at RMB 5,550/mt ($830mt) in the Guangzhou market and at RMB 5,300/mt ($792/mt) in the Boxing market. Meanwhile, also on October 28, prices of SGCC 0.5 mm x 1,000 mm x C HDG were at RMB 5,480/mt ($819/mt) in the Shanghai market, RMB 5,650/mt ($845/mt) in Guangzhou and RMB 5,550/mt ($822/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.69).
During the past week, influenced by high costs and inflation, most traders were anxious to avoid lowering their prices; nevertheless, some traders were forced by the tepid transaction situation to reduce their prices slightly.
It is thought that general downstream demand in China's HDG market will not improve before the end of the year. High cost supplies are expected to arrive in the market in the near future, while northern Chinese supplies are expected to be directed towards the southern market, and so in future southern market inventories are likely to increase. Most traders are expected to adopt a cautious approach considering the high risks.
In general, HDG traders are not optimistic about the future; all think that domestic HDG prices are likely to drop in November.