Ex-China hot dip galvanized (HDG) prices have remained stable in the past week following continuous fluctuations in the HRC futures market, while local prices have been showing more declines this week.
Specifically, offers from large mills are heard at around $590-595/mt FOB for June shipment, moving sideways since April 17, though offer prices from smaller mills are heard at $585-590/mt FOB, remaining unchanged compared to the previous week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has been heard at $585-595/mt, the same as last week.
During the given week, HDG prices in the Chinese domestic market have seen declines amid relatively high supplies. The gradual slowdown in inventory consumption has exerted a negative impact on HDG prices. The gap has increased between supply and demand, weakening the support for HDG prices. However, some buyers might conclude purchases of HDG as the Labor Day holiday (May 1-5) is approaching, which will bolster the prices to a certain degree. It is expected that HDG prices in the Chinese domestic market will edge down slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 47/mt ($6.5/mt) compared to April 17, standing at RMB 4,010/mt ($557/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 24, HRC futures at Shanghai Futures Exchange are standing at RMB 3,204/mt ($443/mt), increasing by RMB 13/mt ($8.9/mt) or 0.4 percent since April 17, while down 0.12 percent compared to the previous trading day, April 23.
$1 = RMB 7.2098
