During the week ending October 20, average Chinese domestic hot dip galvanized (HDG) prices have indicated an upward trend, while overall transaction activity in the market has been at medium levels. Average HDG prices in the local Chinese market are presented in the following table.
During the given week, coking coal and coke prices in China have seen a rising trend, providing support for rises in iron ore and scrap prices, resulting in higher costs for steel production. Some steelmakers have raised their HDG prices for November delivery; for instance, Ansteel Tiantie on October 17 raised its HDG prices for November delivery by RMB 200/mt ($30/mt), exerting a positive impact on HDG prices in the spot market. Meanwhile, ferrous metal futures prices in China have also been increasing, contributing to the bullish sentiment in the domestic steel markets. It is thought that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
| Product name | Spec. | Category | City | Steel plant/origin | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
| Thick galvanized coils | 1.0 mm x 1,250 mm x C | SGCC | Shanghai | Angang | 4,080 | 605 | ↑140 |
| Guangzhou | Angang | 4,120 | 611 | ↑50 | |||
| Boxing | Angang | 3,800 | 564 | ↑20 | |||
| Average | - | 4,000 | 593 | ↑70 | |||
| Thin galvanized coils | 0.5 mm x 1,000 mm x C | SGCC | Shanghai | Tangsteel | 3,760 | 558 | 0 |
| Guangzhou | Guofeng | 3,980 | 591 | ↑20 | |||
| Boxing | Fengming | 3,700 | 549 | ↑20 | |||
| Average | - | 3,813 | 566 | ↑13 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = 6.74 RMB