During the week ending July 29, prices in China's domestic hot dip galvanized (HDG) steel market moved up strongly, especially for thin specifications. Nevertheless, sales activity has abated as many market players have decided to adopt a wait-to-see approach. As of July 29, the average sales prices of hot dip galvanized products 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 | 5,187 | +137 | 766 | +20 |
Thin HDG | 0.5 mm x 1,000 mm | SGCC | 5,427 | +200 | 802 | +29 |
Facing a strong uptrend in galvanized prices, some traders have been busy with restocking activity, while local end-users have been acting with greater caution as regards new purchases. Given the increased inventories in traders' warehouses, some traders have become worried about the future development of the market.
The hot dip galvanized market in southern China has been performing more strongly than the market in the north. However, many traders are reporting low profit margins, given that their inventories mainly consist of high-priced materials which were ordered when prices were already on the rise.
Looking forward, the future price direction depends on whether the recent increases will be fully accepted by domestic end-users. It is expected that future prices of galvanized steels in China may trend sideways for some time.