Even though some recovery in futures HRC prices and consequently in local hot dip galvanized (HDG prices has been seen during the week, Chinese export HDG offers have edged down slightly once again this week amid new drop in HRC futures prices reported on Tuesday, June 20.
Specifically, offers from large mills are still heard at around $640-655/mt FOB for August shipment, moving down by $5/mt on average compared to June 13. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $635-645/mt FOB, down by $5/mt week on week.
During the given week, HDG prices in the Chinese domestic market have indicated a slight uptrend though demand for HDG has been sluggish, while the inventory has been at relatively high level, still exerting a negative impact on its prices. Supply of HDG to the spot market has been sufficient, weakening the support to the prices. At the same time, the demand for HDG is anticipated to be slack in June amid the high temperature in northern China and rainy season in eastern and southern China.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 24/mt ($3.4/mt) compared to June 13, standing at RMB 4,517/mt ($634/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 20, HRC futures at Shanghai Futures Exchange are standing at RMB 3,776/mt ($530/mt), decreasing by RMB 12/mt ($5.6/mt) or 0.3 percent since June 13, while down 0.55 percent compared to the previous trading day, June 19.
$1 = RMB 7.1192
