During the week ending January 25, average prices in the Chinese domestic hot dip galvanized (HDG) market have moved sideways, 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.
During the given week, some private sector HDG producers increased their ex-works prices by RMB 100/mt ($16/mt), providing support for HDG prices in the domestic spot market. However, buyers have been unwilling to accept the price rises and so transaction activity has been slack. Currently, inventories in the HDG market are at relatively low levels. Meanwhile, sales prices of HDG in the spot market are lower than ex-works prices from HDG producers, resulting in losses on the traders’ side, while the high ex-works prices also provide solid support for HDG prices in the spot market. Demand is expected to remain slack in the HDG market due to cold winter weather conditions. It is thought that HDG prices in the Chinese domestic market will continue to move sideways in the coming week.
|
Product name |
Spec. |
Quality |
City |
Steel plant/origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
|
|
Thick galvanized coils |
1.0 mm x 1,250 mm x C |
SGCC |
Shanghai |
Angang |
5,130 |
812 |
0 |
|
|
Guangzhou |
Angang |
5,550 |
878 |
0 |
||||
|
Boxing |
Angang |
5,280 |
835 |
↑30 |
||||
|
Average |
- |
5,320 |
842 |
↑10 |
||||
|
Thin galvanized coils |
0.5 mm x 1,000 mm x C |
SGCC |
Shanghai |
Tangsteel |
4,870 |
771 |
↓10 |
|
|
Guangzhou |
Guofeng |
5,180 |
820 |
↓50 |
||||
|
Boxing |
Fengming |
5,030 |
796 |
↑30 |
||||
|
Average |
- |
5,026 |
795 |
↓10 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = 6.32