Ex-China hot dip galvanized (HDG) prices have edged down further in the past week.
Specifically, offers from large mills are heard at around $595-600/mt FOB for May shipment, declining by $5/mt since March 13, though offer prices from smaller mills are heard at $585-590/mt FOB, decreasing by $5/mt compared to the previous week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has decreased by $5/mt on average to $585-600/mt FOB.
During the given week, HDG prices in the Chinese domestic market have decreased amid declining HRC futures prices. The market situation has not been as good in March as market players had expected, while the declining inventory levels of HDG have bolstered prices to a certain degree. Chinese steelmaker Baosteel has kept its HDG prices stable for delivery in April, which will provide some support for market sentiments in the near future. It is expected 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 decreased by RMB 36/mt ($5.0/mt) compared to March 13, standing at RMB 3,977/mt ($555/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 20, HRC futures at Shanghai Futures Exchange are standing at RMB 3,357/mt ($468/mt), decreasing by RMB 56/mt ($7.8/mt) or 1.6 percent since March 13, while up 0.12 percent compared to the previous trading day, March 19.
$1 = RMB 7.1754
