Ex-China hot dip galvanized (HDG) offer prices have remained mainly the same as last week.
Ex-China hot dip galvanized (HDG) offer prices have remained mainly the same as last week given still slow demand overseas coupled with further softening of local HDG and futures HRC prices.
Offers from mills this week are at $700-710/mt FOB for late July shipment, same as compared to June 22 on average. Reference deal prices for ex-China HDG have been heard at $665-695/mt, FOB, also same as last week.
“The iron ore prices edged down in the given period, while the HRC futures prices also moved down, affecting HDG market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved down amid the decreasing trend in HRC futures prices and the negative impact from Dragon Boat Festival holiday. Meanwhile, the large-scale rainy weather and high temperature negatively affected the demand for HDG. The cautious sentiments prevailed among market players. As the rainy season will continue in eastern and southern China, the HDG prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 57/mt ($7.9/mt) compared to June 15, standing at RMB 4,620/mt ($640/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 29, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,815/mt (528/mt), decreasing by RMB 46/mt ($6.4/mt) or 1.2 percent since June 15.
$1 = RMB 7.2208