During the past week, in the Chinese HDG market prices have slightly dropped, while the market transaction situation has remained neutral as compared to the previous week. As of November 18, HDG prices in the main Chinese markets are as follows:
Product Name |
Specification |
Category |
Average Price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Thick HDG |
1.0mm x 1,250 mm |
SGCC |
5,403 |
-27 |
814 |
-4 |
Thin HDG |
0.5mm x 1,000 mm |
SGCC |
5,587 |
-23 |
841 |
-3 |
On November 18, the price of SGCC 1.0 mm x 1,250 mm x C HDG was sold at RMB 5,360/mt ($807/mt), RMB 5,600/mt ($843mt) and at RMB 5,250/mt ($791/mt) in Shanghai, Guangzhou and Boxing markets respectively. Meanwhile, also on November 18, prices of SGCC 0.5 mm x 1,000 mm x C HDG were at RMB 5,510/mt ($830/mt) in the Shanghai market, RMB 5,800/mt ($873/mt) in Guangzhou and RMB 5,450/mt ($821/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.64).
In the given week, the price decrease was caused by weak demand. On the one hand, colder weather had an adverse influence on construction projects in China's northern areas, resulting in reduced end-user purchase amount. On the other hand, as construction steel, hot rolled coil (HRC) and other steel product prices have trended downward, traders started to consider that it is difficult for HDG prices to go up and transactions between traders reduced. Prices in the steel futures market have trended downward during the past week, which also influenced traders' attitude. However, most of traders think that the room for further decreases is limited. Increased costs and foreseen inflation rise are expected to support the prices. Thus, many traders are now adopting a wait-and-see stance.
In general, there isn't any obvious inventory pressure in the Chinese HDG market. But as there are many uncertainties such as national policy, the Chinese HDG market is expected to fluctuate slightly next week.