Weak activity and tight liquidity in local Chinese HDG market

Thursday, 10 December 2015 11:22:39 (GMT+3)   |   Shanghai
       

During the week ending December 10, Chinese domestic hot dip galvanized (HDG) prices have indicated a stable trend, while overall transaction activity in the market has been at low levels. Average HDG prices in the local Chinese market are presented in the table below.

During the given week, domestic cold rolled sheet (CRS) prices have indicated a slight uptrend, providing a certain degree of support for HDG prices, contributing to their stable movement. Approaching the end of the year, most HDG producers are experiencing tight liquidity, which will likely push them to lower their sales prices in order to bring in cash. Meanwhile, since demand has remained slack, market participants are unwilling to build up their inventories. It is thought that HDG prices in the Chinese domestic market will either move on a stable trend or on a slight downtrend 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

2,490

387

0

Guangzhou

Angang

3,100

481

0

Boxing

Angang

3,910

607

0

Average

-

3,167

492

0

Thin galvanized coils

0.5 mm x 1,000 mm x C

SGCC

Shanghai

Quantong

2,540

394

0

Guangzhou

Ma steel

3,400

528

0

Boxing

Hengtong

2,800

435

0

Average

-

2,913

452

0

17 percent VAT is included in all prices and all prices are ex-warehouse.

$1 = 6.44 RMB


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