Slack demand in Chinese domestic HDG market

Thursday, 23 April 2015 11:20:59 (GMT+3)   |   Shanghai
       

During the week ending April 23, Chinese domestic hot dip galvanized (HDG) prices have indicated an overall downtrend, while transaction activity has remained at low levels.

During the given week, since demand for HDG from downstream users had remained slack, some traders' transaction activities have been affected, exerting a negative impact on HDG prices. Meanwhile, low-priced products from northern China have arrived at the market, also affecting the mainstream offer prices. In addition, major domestic producer Baosteel has cut its HDG prices by RMB 80/mt ($13/mt) for May delivery, which will influence sentiment among market participants. With the end-of-month approaching, local HDG traders mostly come under pressure from tight liquidity. It is expected that HDG prices in the Chinese domestic market will continue their downtrend in the coming week.

Product Name

Spec.

Category

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

3,540

571

↓30

Guangzhou

Angang

4,050

653

0

Boxing

Angang

4,010

647

0

Average

-

3,867

624

↓10

Thin galvanized coils

0.5 mm x 1,000 mm x C

SGCC

Shanghai

Quantong

3,300

532

↓10

Guangzhou

Ma steel

3,600

581

0

Boxing

Hengtong

3,320

535

↓30

Average

-

3,407

549

↓13

17 percent VAT is included in all prices and all prices are ex-warehouse.

$1 = RMB 6,20


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