Ex-China hot dip galvanized (HDG) prices have moved on a downtrend this week following further declines in local HDG prices and HRC futures prices in China.
Specifically, offers from large mills are still heard at around $660-680/mt FOB for May shipment, versus $715/mt FOB last week. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $640/mt FOB, moving down by $30/mt on average week on week.
During the given week, HDG prices in the Chinese domestic market have seen big declines amid increasing inventory levels and decreasing HRC futures prices. At the same time, import iron ore prices have indicated a downtrend, weakening the support for HDG prices from the cost side. HRC prices in the Chinese domestic market have edged down in the given period, exerting a negative impact on the HDG market. However, following recent declines in HDG prices, steelmakers and traders have incurred losses, which will result in production halts and their willingness to raise HDG prices. It is expected that HDG prices in the Chinese domestic market will edge down in the coming week, though at a slower pace.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 84/mt ($12/mt) compared to March 7, standing at RMB 4,623/mt ($651/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 14, HRC futures at Shanghai Futures Exchange are standing at RMB 3,701/mt ($543/mt), decreasing by RMB 152/mt ($21.4/mt) or 3.9 percent since March 7, while down 2.55 percent compared to the previous trading day, March 6.
$1 = RMB 7.0974
