Ex-China hot dip galvanized (HDG) prices have moved down over the past week amid decreasing local HDG prices and declining HRC futures prices.
Specifically, offers from large mills are still heard at around $645-660/mt FOB for August shipment, moving down by $7.5/mt on average compared to June 6. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $640-650/mt FOB, down $5/mt compared to last week.
During the given week, HRC futures prices have moved down following the Dragon Boat Festival, exerting a negative impact on HDG prices. Sellers had to accept price declines to lower their relatively high inventory levels of HDG. At the same time, traders wanted to stimulate transaction activities and so were more ready to negotiate. June is the traditional offseason for the steel industry, weakening the support for HDG prices. Major Chinese steelmaker Baosteel has kept local base prices stable for HDG for delivery in July, bolstering prices in the spot market.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 74/mt ($10.4/mt) compared to June 6, standing at RMB 4,493/mt ($632/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 13, HRC futures at Shanghai Futures Exchange are standing at RMB 3,788/mt ($533/mt), decreasing by RMB 40/mt ($5.6/mt) or 1.0 percent since June 6, while up 0.37 percent compared to the previous trading day, June 12.
$1 = RMB 7.1122
