During the week ending September 19, 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 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 |
4,683 |
-7 |
662 |
0 |
|
Thin HDG |
0.5 x 1,000 |
SGCC |
4,836 |
-7 |
684 |
0 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
In the given week, cautious sentiment has prevailed in the domestic steel market. HRC futures prices at Shanghai Futures Exchange (SHFE) have decreased from RMB 3,568/mt ($504/mt) on September 12 to RMB 3,428/mt ($485/mt) on September 19, down 3.9 percent.
During the given week, demand for HDG in China has fallen short of market players’ expectations, thereby weakening support for HDG prices. Traders have been unwilling to build up stocks due to slack demand. With the National Day holiday (October 1-7) approaching, it is expected that HDG prices in the Chinese domestic market will move sideways in the coming week.
$1 = RMB 7.07