Ex-China hot dip galvanized (HDG) prices have edged down slightly over the past week as smaller mills chose to sell at lower prices.
Specifically, offers from large mills are heard at around $585-615/mt FOB for February shipment, moving sideways on average compared to December 19, though offer prices from smaller mills are heard at $575-585/mt FOB. As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $575-615/mt FOB, versus $585-615/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have edged up slightly amid the increasing HRC futures prices. However, the demand from downstream users remained slack, while cautious sentiments prevailed among market players. Part of specifications in HDG market has been in shortage, bolstering its prices to a certain degree. Meanwhile, the inventory of HDG has been at relatively low level, also providing certain support to its prices. It is thought that HDG prices in the Chinese domestic market may fluctuate within a limited range 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 December 19, standing at RMB 4,083/mt ($568/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 26, HRC futures at Shanghai Futures Exchange are standing at RMB 3,428/mt ($477/mt), increasing by RMB 9/mt ($1.2/mt) or 0.26 percent since December 19, while up 0.18 percent compared to the previous trading day, December 25.
$1 = RMB 7.1897
