Ex-China hot dip galvanized (HDG) prices have edged down over the past week following sharp drops in HRC futures prices and declines in export prices for HRC and CRC.
Specifically, offers from large mills are still heard at around $615/mt FOB for October shipment, versus $630-640/mt FOB last week. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $600-615/mt FOB, versus $610-615/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have moved down further amid declining HRC futures prices. Bearish sentiments have prevailed among market participants, exerting a negative impact on HDG prices. At the same time, transaction activities have been quiet, weakening the support for HDG prices. It is expected that HDG prices in the Chinese domestic market will continue their downtrend in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 97/mt ($13.6/mt) compared to August 8, standing at RMB 4,000/mt ($560/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 8, HRC futures at Shanghai Futures Exchange are standing at RMB 3,222/mt ($451/mt), decreasing by RMB 259/mt ($36.3/mt) or 7.4 percent since August 8, while down 1.71 percent compared to the previous trading day, August 14.
$1 = RMB 7.1399
