Ex-China hot dip galvanized (HDG) prices have been maintained at more or less the same levels as last week, while improved sentiments have been observed in the HRC futures market in China.
Specifically, offers from large mills have remained at $580-605/mt FOB for March shipment, while offer prices from smaller mills are heard at $565-575/mt FOB, the same as last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $565-605/mt FOB, moving sideways over the past week.
During the given week, HDG prices in the Chinese domestic market have remained stable amid the increases in HRC futures prices, though demand from downstream users has been slack. Processing activities at warehouses in various regions have basically been at normal levels, but they may decline in the coming week as more and more market players will leave the market ahead of the Chinese New Year holiday (January 28-February 4). It is thought that HDG prices in the Chinese domestic market will likely move sideways in the coming week, while they may rebound after the long holiday.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved sideways compared to January 9, standing at RMB 4,073/mt ($566.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 16, HRC futures at Shanghai Futures Exchange are standing at RMB 3,447/mt ($479/mt), increasing by RMB 134/mt ($19/mt) or 4.0 percent since January 9, while up 1.09 percent compared to the previous trading day, January 15.
$1 = RMB 7.1881
