Although ex-China hot dip galvanized (HDG) offer prices from big mills have remained relatively stable over the past week, while some lower offers for ex-China HDG have been reported in the market given the fluctuating trend in HRC futures prices and slow demand overseas.
More specifically, offers from mills this week are at $700-710/mt FOB for late October shipment, moving sideways compared to August 10 on average. At the same time, according to sources, most tradable prices have been heard at $690-700/mt FOB, the same as last week, though lower offers at around $675/mt FOB have been reported this week. Thus, the reference deal prices for ex-China HDG have settled at $675-700/mt FOB, down by $7.5/mt on average week on week.
“Both supply and demand have been weak at the current stage, resulting in the prevailing cautious sentiments among market players,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have seen declines amid the fluctuation in HRC futures prices. Currently, the demand for HDG from downstream users has remained slack and less speculation in the HDG market has been observed, exerting a negative impact on prices. However, market players expect a better performance in the coming peak season, which will bolster HDG prices to some extent.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 23/mt ($3.2/mt) compared to August 10, standing at RMB 4,850/mt ($674/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 17, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,924/mt (544/mt), slightly increasing by RMB 3/mt ($0.4/mt) or 0.08 percent since August 10.
$1 = RMB 7.2076