During the week ending June 1, the average prices of Chinese domestic hot dip galvanized (HDG) have increased slightly for thick specifications, but have declined slightly for thin specifications. Overall transaction activity in the market has been at decent levels. Average HDG prices in the local Chinese market are presented in the following table.
During the given week, the raw materials market has been quite quiet after previous price rises, and the situation has been similar in the steel futures market. Since HDG prices are unlikely to continue their previous rising trend, downstream users are mostly purchasing only in line with their needs.
Currently, some HDG producers in northern China have resumed production amid reduced pressure on the environmental side. At the same time, with previously-purchased hot rolled coil (HRC) having been purchased at relatively low cost, profits on HDG producers' side are significant. Booking activity by downstream users and traders has been at decent levels. It is expected that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
Product name | Spec. | Quality | City | Steel plant/origin | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
Thick galvanized coils | 1.0 mm x 1,250 mm x C | SGCC | Shanghai | Angang | 4,720 | 694 | ↓20 |
Guangzhou | Angang | 4,950 | 728 | ↑80 | |||
Boxing | Angang | 4,430 | 651 | 0 | |||
Average | - | 4,700 | 691 | ↑20 | |||
Thin galvanized coils | 0.5 mm x 1,000 mm x C | SGCC | Shanghai | Tangsteel | 4,130 | 607 | ↓50 |
Guangzhou | Guofeng | 4,500 | 662 | ↑30 | |||
Boxing | Fengming | 4,120 | 606 | 0 | |||
Average | - | 4,250 | 625 | ↓7 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = 6.80 RMB