In the week ending September 29, hot dip galvanized (HDG) prices in the Chinese domestic market have moved down, at a faster pace than in the previous week. As of September 29, the average HDG prices in the main markets in China were 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 |
5,687 |
-40 |
890 |
-6 |
Thin HDG |
0.5mm x 1,000 mm |
SGCC |
5,833 |
-24 |
913 |
-4 |
As of September 29, 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 5,680/mt ($889/mt), RMB 5,860/mt ($917/mt) and RMB 5,520/mt ($864/mt); meanwhile, the price of SGCC 0.5 mm x 1,000 mm x C stands at RMB 5,700/mt ($892/mt), RMB 6,300/mt ($986/mt) and RMB 5,500/mt ($861/mt) in the above respective markets. These prices include 17 percent VAT ($1 = RMB 6.39).
In the main Chinese HDG markets, while some traders have cut their quotations sharply, most traders intend to monitor the market trend before making any price reduction.
The decline in the overall domestic steel market has also had a negative impact on the prices of steel billets and iron ore. The current economic uncertainty will continue to affect the domestic steel market in the coming period. Due to worries that new arrivals could increase in the HDG market during the National Day holiday in early October (Oct. 1-7), traders have preferred to keep their stocks at minimum levels in the past week. Meanwhile, expected large-scale purchases of end-users have not materialized before the holiday.
It is expected that Chinese HDG prices would continue their downward trend in the coming week.