During the week ending November 14, average prices in the Chinese domestic hot dip galvanized (HDG) market have edged up slightly for thin specifications, 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 |
4,583 |
-10 |
654 |
-2 |
|
Thin HDG |
0.5 x 1,000 |
SGCC |
4,810 |
+23 |
686 |
+2 |
All the above prices include 13 percent VAT.
In the given week, though demand for HDG from downstream users has not improved significantly, market sentiment is better due to rising futures prices and the announcement of air pollution control programs. However, market players are cautious on the prospect for the HDG market as the cold winter weather is approaching.
HRC futures prices at Shanghai Futures Exchange (SHFE) have increased from RMB 3,364/mt on November 7 to RMB 3,467/mt ($495/mt) on November 14, up RMB 103/mt ($14.7/mt) or 3.1 percent, signaling an improvement in sentiment in the steel futures market due to the air pollution control programs being issued in the Yangtze River Delta area and in the Fenwei plain area including the provinces of Shanxi, Shaanxi and Henan.
Moreover, inventory of HDG in the domestic spot market has decreased and is now at relatively low levels, which will provide support for HDG market.
$1 = RMB 7.0083