Ex-China hot dip galvanized (HDG) prices have seen decreases this week due to still weak demand overseas, while, although HRC futures prices have been showing some rebounds during past days, sentiments have remained more negative than positive given the unclear price trend.
Specifically, offers from large mills are still heard at around $725-730/mt FOB for March shipment, edging down by $10/mt compared to last week. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $690-705/mt FOB, versus $697-720/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have moved sideways amid sluggish demand and slightly increasing inventory levels in some regions. At the same time, market players have been cautious as regards the future prospects for the HDG market. Meanwhile, import iron ore prices have moved down, weakening the support for HDG prices. However, market players think buyers may build up stocks ahead of the Chinese New Year holiday, which would bolster HDG prices to a certain degree.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved sideways compared to January 11, standing at RMB 4,797/mt ($675/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 18, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,030/mt ($567/mt), decreasing by RMB 11/mt ($1.5/mt) or 0.27 percent compared to January 11, while indicating a rise of 0.17 percent compared to the previous trading day (January 17).
$1 = RMB 7.1174