Ex-China hot dip galvanized (HDG) offer prices have moved up further in the past week, following the increasing trend in the previous week. Offers are at $585-600/mt FOB this week, up by $7.5/mt on average compared to one week ago amid the high levels of HRC and iron ore prices. At the same time, reference deal prices have been assessed by market sources at $580-590/mt FOB, to South America and Southeast Asia.
“Following continuous rises seen in ex-China HDG offer prices, buyers from the overseas market cannot follow up, while steelmakers’ limited HDG supplies for the export market will likely result in even higher offer prices,” one trader said.
During the given week, HDG prices in the Chinese domestic market have seen sharp rises, while transaction activities have been at low-to-medium levels. Following the quick rises in price, downstream users have mostly held a wait-and-see stance, though sellers have been unwilling to lower sales prices due to the high cost paid for previously booked material.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved up by RMB 76/mt ($11/mt) week on week to RMB 4,706/mt ($678/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 6, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 3,910/mt ($563.4/mt), increasing by RMB 91/mt ($13.1/mt) or 2.4 percent since July 30.
$1 = RMB 6.9438
