During the week ending November 28, average prices in the Chinese domestic hot dip galvanized (HDG) market have edged up, while transaction activity in the market has been at low-to-medium levels. Average HDG prices in the local Chinese market are presented in the following table.
|
Product name |
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
|
Thick HDG |
1.0 x 1,250 |
SGCC |
4,676 |
+30 |
665 |
+3 |
|
|
Thin HDG |
0.5 x 1,000 |
SGCC |
4,916 |
+30 |
700 |
+4 |
All the above prices include 13 percent VAT.
In the given week, demand for HDG from downstream users in China has remained slack, while market sentiment has started to weaken following the previous sharp price rises.
As of November 28, HRC futures prices at Shanghai Futures Exchange (SHFE) have increased to RMB 3,555/mt ($506/mt), up RMB 59/mt ($8.4/mt) or 1.69 percent from November 21 amid fluctuations, signaling an improvement in sentiment in the steel futures market.
HDG inventory in the domestic spot market has started to rise, negatively impacting sentiment in the market. Moreover, trading activity in overall flat steel market has started to slacken, affecting spot prices, of HRC in particular.
$1 = RMB 7.027