Ex-China hot dip galvanized (HDG) prices have moved up over the past week, though prices have declined as compared to offers reported at the beginning of this week as the general mood has been worsening in the market given the fall seen in futures prices.
Specifically, offers from large mills are heard at around $620-640/mt FOB for December shipment, against $620/mt FOB reported two weeks ago, but versus $665/mt FOB heard at the beginning of the week. Besides, offer prices from smaller mills are heard at around $620/mt FOB, up by around $25/mt over the past two weeks. As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $620-640/mt FOB, versus $580-620/mt FOB two weeks ago.
During the given week, HDG prices in the Chinese domestic market have seen big rises amid downstream users’ replenishments ahead of the long National Day holiday and China’s stimulus measures. Meanwhile, HRC futures prices have moved up, exerting a positive impact on the HDG market. Moreover, major Chinese steelmaker Baosteel has hikes its HDG ex-works price by RMB 550/mt ($78/mt) for November, providing solid support for the HDG market. In the past two trading days, the turbulence in China’s financial markets has negatively affected market sentiments. It is expected that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 307/mt ($43.4/mt) compared to September 26, standing at RMB 4,180/mt ($591/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 10, HRC futures at Shanghai Futures Exchange are standing at RMB 3,578/mt ($506/mt), increasing by RMB 226/mt ($32/mt) or 6.7 percent since September 26, while down 0.89 percent compared to the previous trading day, October 9.
$1 = RMB 7.0742
