Ex-China hot dip galvanized (HDG) prices have edged down over the past week despite better sentiments in the local market.
Specifically, offers from large mills are still heard at around $635-650/mt FOB for August shipment, edging down by $5/mt on average compared to June 27. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $630-640/mt FOB, decreasing by $5/mt compared to last week.
During the given week, HDG prices in the Chinese domestic market have increased amid improved market sentiments as the rainfalls in eastern China have gradually stopped. HRC futures prices have indicated an increasing trend, exerting a positive impact on the HDG market. However, more time may be needed to observe the release of demand from downstream users given the current prevailing hot summer weather conditions. Inventory of HDG has been at relatively low levels since there has been some tightness on the supply side. It is expected that HDG prices in the Chinese domestic market may edge up slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 23/mt ($3.2/mt) compared to June 27, standing at RMB 4,513/mt ($633/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 4, HRC futures at Shanghai Futures Exchange are standing at RMB 3,801/mt ($533/mt), increasing by RMB 66/mt ($9.3/mt) or 1.8 percent since June 27, while up 0.58 percent compared to the previous trading day, July 3.
$1 = RMB 7.1305
