Ex-China hot dip galvanized (HDG) prices have moved down over the past week following declines in HRC and CRC prices, against the backdrop of the fall in HRC futures prices in China.
Specifically, offers from large mills are heard at around $580-605/mt FOB for February shipment, edging down by $7.5/mt on average compared to January 2, though offer prices from smaller mills are heard at $565-575/mt FOB, decreasing by $7.5/mt week on week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $565-605/mt FOB, versus $575-615/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have edged down amid the decreases in HRC futures prices. Meanwhile, bearish sentiments have prevailed among market players, exerting a negative impact on HDG prices. The supply shortage has bolstered HDG prices to a certain degree. It is thought that HDG prices in the Chinese domestic market will edge down further in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved down by RMB 10/mt ($1.4/mt) compared to January 2, standing at RMB 4,073/mt ($566.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 9, HRC futures at Shanghai Futures Exchange are standing at RMB 3,313/mt ($461/mt), decreasing by RMB 111/mt ($20/mt) or 3.2 percent since January 2, while down 0.57 percent compared to the previous trading day, January 8.
$1 = RMB 7.1886
