Tight margins for traders in Chinese domestic HDG market

Thursday, 21 August 2014 14:38:28 (GMT+3)   |   Shanghai
During the week ending August 21, Chinese domestic hot dip galvanized (HDG) prices have continued to see a slight downtrend, while transaction activity has remained at low levels and has even slackened further. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section. 

Rainy weather has lately impacted transaction volumes in the Chinese domestic HDG market and traders have had to adjust their prices downward slightly amid a further slackening of activity. At the same time, the average cost of HDG supplies arriving in the market is around RMB 4,500/mt ($732/mt), and so traders' profit margins are being squeezed. As for the coming week, it is thought that domestic HDG prices will move on a slightly soft trend as demand appears unlikely to indicate any significant improvement.

$1 = RMB 6.15


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