During the week ending November 21, average prices in the Chinese domestic hot dip galvanized (HDG) market have moved 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 |
4,646 |
+63 |
662 |
+8 |
|
Thin HDG |
0.5 x 1,000 |
SGCC |
4,886 |
+76 |
696 |
+10 |
All the above prices include 13 percent VAT.
In the given week, demand for HDG from downstream users in China has not seen any significant increase, while market sentiment has improved due to the Chinese central bank’s’ measures to inject liquidity into the market.
HRC futures prices at Shanghai Futures Exchange (SHFE) have increased from RMB 3,467/mt on November 14 to RMB 3,496/mt ($498/mt) on November 21, up RMB 29/mt ($4.1/mt) or 0.84 percent, signaling an improvement in sentiment in the steel futures market.
Moreover, HDG inventory in the domestic spot market is still at relatively low levels, which will provide support for the HDG market.
$1 = RMB 7.0217