Ex-China hot dip galvanized (HDG) prices from mills have remained mainly stable this week amid the approach of the Chinese New Year holiday (February 9-16) and the extremely quiet market. However, some decline in prices has been heard from traders who were trying to sell at more attractive levels before leaving the market for the holiday.
Specifically, offers from large mills are still heard at around $725-730/mt FOB for April shipment, remaining unchanged compared to last week. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $675-700/mt FOB, versus $690-710/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have moved sideways as most market players have left the market for the Chinese New Year holiday. Inventory of HDG has seen increases, while there has been limited actual demand from downstream users. It is thought that HDG prices in the Chinese domestic market will not rebound until after the holiday.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have remained unchanged compared to February 1, standing at RMB 4,767/mt ($671.4/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 8, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,984/mt ($561/mt), decreasing by RMB 20/mt ($3/mt) or 0.5 percent compared to February 1, while indicating a rise of 0.61 percent compared to the previous trading day (February 7).
$1 = RMB 7.1069
