During the past week the Chinese domestic hot dip galvanized (HDG) market remained in a depressed state, with market prices trending downward. Traders hold diverse opinions about the future market trend.
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 |
5,450 |
-7 |
813 |
-1 |
Thin HDG |
0.5mm x 1,000 mm |
SGCC |
5,590 |
-30 |
834 |
-4 |
In the Shanghai market on September 23, the price of SGCC 1.0 mm x 1,250 mm x C HDG was at RMB 5,300/mt ($791/mt). The same product was sold on this date at RMB 5,650/mt ($843mt) in the Guangzhou market and at RMB 5,400/mt ($806/mt) in the Boxing market. Meanwhile, also on September 23, prices of SGCC 0.5 mm x 1,000 mm x C HDG were at RMB 5,430/mt ($810/mt) in the Shanghai market, RMB 5,700/mt ($851/mt) in Guangzhou and RMB 5,640/mt ($842/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.70).
According to feedback from the market, traders in the main Chinese regions have continued to hold diverse opinions on the prospects for the future trend of the market. Some traders, thinking that the National Day holiday will cause supply to exceed demand and that the transaction situation cannot thus improve, have decided to sell products at low prices; meanwhile, other traders, considering that ex-mill prices were higher than market prices and that the market transaction volume was low, decided to halt their sales; some traders also considered that prices were near the bottom and so could not drop much further. Although the traditional busy season in September did not stimulate many purchases, some traders are expect more demand to appear in the market and so they have been replenishing their inventories.
With Chinese HDG traders holding diverse opinions about the market price trend, it is expected that the market may continue to fluctuate in the coming period.