Ex-China hot dip galvanized (HDG) prices have edged down over the past week amid the declines seen in the local market coupled with worse sentiments mounting in the cold rolled coil (CRC) and hot rolled coil (HRC) segments this week.
Specifically, offers from large mills are still heard at around $650-660/mt FOB for July shipment, moving down by $15/mt compared to May 9. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $645-650/mt FOB, against $660/mt FOB last week.
During the given week, major Chinese steelmakers including Baosteel and Shougang Group kept their HDG offer prices stable for June delivery, bolstering HDG spot prices to a certain degree. HRC futures prices have been fluctuating, while the rise of 1.86 percent on May 16 has positively affected market players’ confidence. However, demand for HDG has been slack, still exerting a negative impact on prices. It is thought that HDG prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 27/mt ($3.8/mt) compared to May 9, standing at RMB 4,667/mt ($657/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 16, HRC futures at Shanghai Futures Exchange are standing at RMB 3,840/mt ($541/mt), increasing by RMB 33/mt ($2.8/mt) or 0.9 percent since May 9, while up 1.86 percent compared to the previous trading day, May 15.
$1 = RMB 7.102
