During the week ending November 7, average prices in the Chinese domestic hot dip galvanized (HDG) market have edged up 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 |
4,593 |
+3 |
656 |
+5 |
|
Thin HDG |
0.5 x 1,000 |
SGCC |
4,786 |
+3 |
684 |
+6 |
All the above prices include 13 percent VAT.
In the given week, demand for HDG from downstream users has been slack as market players have mostly held a wait-and-see stance as regards the prospects for the market. At the same time, production of HDG producers has also been at comparatively low levels. The weak situation in both supply and demand will likely continue in the coming period.
HRC futures prices at Shanghai Futures Exchange (SHFE) have increased from RMB 3,351/mt ($489/mt) on October 31 to RMB 3,364/mt ($489/mt) on November 7, up RMB 13/mt ($0.7/mt) or 0.4 percent, signaling a slight improvement in sentiment in the steel futures market due to the production restriction measures being implemented in many regions.
Moreover, the People's Bank of China’s medium-term lending facility (MLF) operations have exerted a positive impact on the steel market. It is expected that HDG prices in the Chinese domestic market will move sideways in the coming week.
$1 = RMB 7.00