During the week ending October 24, average prices in the Chinese domestic hot dip galvanized (HDG) market have moved down further, 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 |
4,606 |
-23 |
651 |
-3 |
Thin HDG |
0.5 x 1,000 |
SGCC |
4,800 |
-6 |
679 |
0 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
In the given week, demand for HDG from downstream users in China has still been slack, exerting a negative impact on the HDG market. As the end of the month is approaching, the tighter liquidity of market players has contributed to lower sales prices of HDG.
Hot rolled coil (HRC) futures prices at Shanghai Futures Exchange (SHFE) have risen from RMB 3,312/mt ($485/mt) on October 17 to RMB 3,356/mt ($489/mt) on October 24, up by RMB 44/mt or 1.3 percent, indicating that sentiment has started to improve in the flat steel market.
Since construction has started on many infrastructure projects in several provinces in China, demand for steel will likely improve, supporting steel prices in the near future.
$1 = RMB 7.07
