Ex-China hot dip galvanized (HDG) offer prices have moved up in the past week amid the increasing trend in the local market and the bullishness in the HRC segment. But export activity has ground to a halt as many mills have not been willing to give offers to the export market, waiting instead for the announcement of anticipated tax rebate cut.
Rare offers are at $950-970/mt FOB for late June shipment this week, moving up by $75/mt on average, but this increase in prices has been nominal and it has been very hard to find a firm offer. “Most steelmakers have stopped giving export offer prices for HDG due to the possible cut of the tax rebate. No deals have been heard as both buyers and sellers have been waiting for a clear policy,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have seen sharp rises amid increasing HRC futures prices and raw material prices. Meanwhile, inventory of HDG has been at relatively low levels, bolstering prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 140/mt ($21/mt) week on week to RMB 6,393/mt ($977/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 8, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,490/mt ($839/mt), increasing by RMB 23/mt ($3.5/mt) or 0.42 percent since April 1.
$1 = RMB 6.5463
