In the past week, the Chinese hot dip galvanized (HDG) market has followed a stable trend. 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 |
1.0mm x 1,250 mm |
SGCC |
5,780 |
0 |
903 |
0 |
Thin HDG |
0.5mm x 1,000 mm |
SGCC |
5,857 |
0 |
915 |
0 |
As of August 26, 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 5,810/mt ($908/mt), RMB 5,980 /mt ($934/mt) and RMB 5,550/mt ($867/mt); meanwhile, the price of SGCC 0.5 mm x 1,000 mm x C stands at RMB 5,650/mt ($883/mt), RMB 6,360/mt ($994/mt) and RMB 5,560/mt ($869/mt) in the above respective markets. These prices include 17 percent VAT ($1 = RMB 6. 40).
In Chinese HDG market, some Chinese mills have recently raised their hot rolled coil ex-works prices as well as their full hard steel prices, but have kept their HDG prices stable. Traders report that their profit margins are narrowing. Traders can currently earn just RMB 20-30/mt ($ 3-4/mt) on HDG materials bought directly from the mills. In line with the increasing number of HDG production lines in China, more mills are joining the retail trade with lower sales prices than the traders. Accordingly, end-users are buying less from traders and HDG trading enterprises are coming under greater financial pressure.
Prices in the Chinese HDG market are unlikely to rise as the outlook for purchases from end-users is not so good. If demand improves in the future, market prices could increase with the support of costs.