Ex-China hot dip galvanized (HDG) prices have remained relatively, though some upward bias has been seen in offers from smaller mills and traders in the given week.
Specifically, offers from large mills are heard at around $590-595/mt FOB for June shipment, the same as last week, though offer prices from smaller mills are heard at $585-590/mt FOB, up $5/mt compared to the previous week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $585-590/mt, versus the price of $580-595/mt FOB last week.
Although HDG prices in the Chinese domestic market have moved down sharply in the first three trading days in the given week, average HDG prices in the Chinese domestic market have edged up slightly compared to last week amid the shortage of HDG supplies in the spot market. Demand for HDG from downstream users has been weak, while speculative demand from market players has also been poor. Cautious sentiments prevail among market players at present due to the tariff issue between the US and China. The impact of this issue on indirect exports and the re-export trade is more significant than on direct exports, and so it exerts a negative impact on market sentiments.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have increased by RMB 7/mt ($1/mt) compared to April 10, standing at RMB 4,057/mt ($563.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 17, HRC futures at Shanghai Futures Exchange are standing at RMB 3,191/mt ($443/mt), decreasing by RMB 64/mt ($8.9/mt) or 2.0 percent since April 10, while down 0.75 percent compared to the previous trading day, April 16.
$1 = RMB 7.2085