Ex-China hot dip galvanized (HDG) prices from most mills have remained stable this week amid the increasing trend of HRC futures prices and the stimulus policy involving additional bonds worth RMB 1.0 trillion ($0.14 trillion) for 2023 to be issued in the October-December period. However, despite better sentiment, tradable prices have indicated a slight drop as overseas demand has remained poor so far.
Specifically, offers from large mills have remained at around $700/mt FOB for December shipment. Meanwhile, the reference deal prices for ex-China HDG have been heard at $660-680/mt FOB, against $660-690/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have edged up amid the relatively tight supply in the spot market and the increasing trend of HRC futures prices. Besides, demand for HDG has improved slightly in the given period, which has exerted a positive impact on prices. Moreover, cautious sentiments have still prevailed among market players.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 20/mt ($2.8/mt) compared to October 19, standing at RMB 4,730/mt ($659/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 26, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,795/mt (529/mt), moving up by RMB 30/mt ($4.2/mt) or 0.8 percent compared to October 19.
$1 = RMB 7.1784