The downtrend observed in the previous week's hot dip galvanized (HDG) steel market in China having halted in the past week ending September 2, prices have indicated minor upticks in Chinese main regions. As of September 2, average HDG prices in the major Chinese regions are as follows:
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Thick HDG | 1.0 mm x 1,250 mm | SGCC | 5,333 | +30 | 784 | +4 |
Thin HDG | 0.5 mm x 1,000 mm | SGCC | 5,520 | +10 | 812 | +1 |
In the Shanghai market, the price of SGCC 1.0 mm x 1,250 mm x C HDG is now at RMB 5,150/mt ($757/mt). The same product is sold at RMB 5,600/mt ($824/mt) in the Guangzhou market and at RMB 5,250/mt ($772/mt) in the Boxing market. Meanwhile, prices of SGCC 0.5 mm x 1,000 mm x C HDG stand at RMB 5,430/mt ($799/mt) in the Shanghai market, at RMB 5,650/mt ($831/mt) in Guangzhou and at RMB 5,480/mt ($812/mt) in the Boxing market.
The rising trend seen in the futures market as well as the rebounds in high speed wire rod and hot rolled coil markets have combined to lift up the confidence in the domestic galvanized steel market. However, given the weak sales activities in the market, most traders have not shown any strong willingness to raise prices.
Domestic galvanized steel producers are mostly expected to complete their order books by the end of this month or the beginning of next month. Producers are still gaining small profits from recent sales.
During the week in question, prices of Chinese domestic major mills for September have gained clarity gradually. It is expected that the galvanized steel market will continue to trend sideways in the coming week.