In the past week, the Chinese hot dip galvanized (HDG) market has continued to decline, though at a slower rate. The average HDG prices in the main markets in China 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 |
5,310 |
-93 |
838 |
-15 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,467 |
-160 |
862 |
-25 |
As of October 27, the price of SGCC 1.0 mm x 1,250 mm x C galvanized products in the markets of Shanghai, Guangzhou and Boxing respectively stands at RMB 5,150/mt ($812/mt), RMB 5,530/mt ($872/mt) and RMB 5,250/mt ($828/mt); meanwhile, the price of SGCC 0.5 mm x 1,000 mm x C stands at RMB 5,300/mt ($836/mt), RMB 6,000/mt ($946/mt) and RMB 5,100/mt ($804/mt) in the above respective markets. These prices include 17 percent VAT ($1 = RMB 6. 34).
In the Chinese HDG market, there is a lack of confidence in the prospects for the future and funds are still on the short side, and so traders are adopting a wait-and-see stance in the short term. Accordingly, the transaction volume in the market is at low levels. Meanwhile, it is heard that some integrated mills are carrying out maintenance work; however, as they have just started to halt production, no great impact has been seen on output levels.
Data released by the China Association of Automobile Manufactures (CAAM) and the China Economic Monitoring & Analysis Centre (CEMAC) of the National Bureau of Statistics (NBS), the Chinese automobile industry climate index is still low. Meanwhile, demand in downstream industries such household appliances and construction has not improved, which means less support for market prices.
Summing up, the Chinese HDG market currently lacks support for upward movement and is expected to continue to fluctuate downward in the coming seven days.