Ex-China hot dip galvanized (HDG) high-end offer prices have moved down in the past week following an uptrend in the previous week. Offers are at $535-545/mt FOB for late July delivery this week, with high-end offer prices down $10/mt compared to one week ago as buyers have not accepted higher prices. At the same time, reference deal prices have been heard at $530-535/mt FOB to Southeast Asia and South America, almost in line with the deals heard last week.
“Most steelmakers have sold out their HDG for July delivery, while activities for August delivery have not started yet, resulting in a quiet export market in the given week, though sentiments have not worsened,” one trader said.
During the given week, following continuous rises in the previous period, demand from downstream users in China has not followed up, weakening the support for HDG prices. Meanwhile, some big HDG traders’ inventories are at relatively high levels and so they have been willing to sell. It is thought that HDG prices in the Chinese domestic market will move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 3/mt ($0.4/mt) week on week to RMB 4,393/mt ($617/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 28, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,447/mt ($484/mt), decreasing by RMB 22/mt ($3.1/mt) or 0.6 percent since May 21.
$1 = RMB 7.1277
