Even though local hot dip galvanized (HDG) prices and hot rolled coil (HRC) prices in China have indicated some recovery, ex-China HDG prices have edged down slightly over the past week, mainly due to slow demand globally.
Specifically, offers from large mills are heard at around $595-625/mt FOB for January shipment, edging down by $7.5/mt on average compared to November 14, though offer prices from smaller mills are heard at $595/mt FOB, against $600-615/mt CFR last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $595-625/mt FOB, versus $600-625/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have fluctuated within a limited range amid the slight increases in HRC futures prices. Meanwhile, rising iron ore prices have bolstered HDG prices from the cost side. The pressure from HDG inventories is at medium levels at the current stage. However, cautious sentiments prevail among market players due to the slack demand from downstream users. Moreover, a new wave of cold weather will hit China in the near future, which will weaken the support for HDG prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 14/mt ($2/mt) compared to November 14, standing at RMB 4,047/mt ($563/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 21, HRC futures at Shanghai Futures Exchange are standing at RMB 3,497/mt ($484/mt), increasing by RMB 13/mt ($15/mt) or 0.4 percent since November 14, while up 0.29 percent compared to the previous trading day, November 20.
$1 = RMB 7.1934
