Ex-China hot dip galvanized (HDG) prices have edged down in the past week.
Specifically, offers from large mills are heard at around $580-590/mt FOB for June shipment, moving down by $5-10/mt since May 15, though offer prices from smaller mills are heard at $570-575/mt FOB, down $5/mt compared to May 15.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has been heard at $570-590/mt, versus the price of $575-595/mt FOB heard last week.
During the given week, HDG prices in the Chinese domestic market have edged down slightly amid the slowdown in transaction activities as downstream users mostly purchased just in line with their needs. Market players lack confidence as regards the future prospects for the HDG market. HDG producers have had to cut their ex-works prices amid shrinking profitability as they aimed to stimulate transaction activities. Demand for HDG is unlikely to improve significantly soon amid the approach of the traditional offseason and hot weather. It is thought that HDG prices in the Chinese domestic market will edge down in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 33/mt ($4.6/mt) compared to May 15, standing at RMB 3,930/mt ($546/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 22, HRC futures at Shanghai Futures Exchange are standing at RMB 3,210/mt ($446/mt), decreasing by RMB 50/mt ($6.9/mt) or 1.5 percent since May 15, while up 0.09 percent compared to the previous trading day, May 21.
$1 = RMB 7.1903
