During the week ending October 31, average prices in the Chinese domestic hot dip galvanized (HDG) market have edged down slightly, 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 |
4,590 |
-16 |
651 |
0 |
|
Thin HDG |
0.5 x 1,000 |
SGCC |
4,783 |
-16 |
678 |
-1 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
In the given week, demand for HDG from downstream users has remained slack amid increased caution among market players. Though current inventories of HDG are at relatively low levels, HDG supplies arriving in the market have increased and will likely push up inventories in the near future.
Hot rolled coil (HRC) futures prices at Shanghai Futures Exchange (SHFE) have decreased from RMB 3,356/mt ($475.8/mt) on October 24 to RMB 3,351/mt ($475.1/mt) on October 31, down RMB 5/mt ($0.7/mt) or 0.15 percent, against the background of production restriction measures being implemented in many regions.
Currently, infrastructure construction investments have been providing support to the steel market, though demand will slacken from now on during the traditional offseason as the weather gets colder and colder. It is thought that HDG prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
$1 = RMB 7.053