During the week ending September 12, 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 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 |
4,690 |
+6 |
662 |
+1 |
|
Thin HDG |
0.5 x 1,000 |
SGCC |
4,843 |
+6 |
684 |
+1 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
The People’s Bank of China (PBC) announced on September 6 that it has decided to lower the required reserve ratio (RRR) for financial institutions by 0.5 percentage points on September 16, boosting market players’ sentiments in ferrous metal market. HRC futures prices at Shanghai Futures Exchange (SHFE) increased from RMB 3,442/mt ($486/mt) on September 5 to RMB 3,568/mt ($504/mt) on September 12, up by 3.7 percent.
During the given week, downstream users have been cautious in concluding purchases for HDG due to the approaching Mid-Autumn Day (Sept 13-15). It is expected that HDG prices in the Chinese domestic market will move sideways in the coming week.
$1 = RMB 7.08