Ex-China hot dip galvanized (HDG) prices have moved on a downward trend amid lower prices in the hot rolled coil (HRC) and cold rolled coil (CRC) segments, coupled with weaker demand for HDG locally.
Specifically, HDG offers from large mills are heard at around $630-640/mt FOB for September shipment, decreasing by $5/mt on average compared to July 18. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $610-625/mt FOB, versus $630-635/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have moved on an overall downtrend amid the prevailing bearish sentiments among market players. Demand for HDG from downstream users has not seen any improvement yet, exerting a negative impact on prices. At the same time, decreasing HRC futures prices have weakened the support for HDG prices. It is thought that HDG prices in the Chinese domestic market will likely edge down in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 63/mt ($8.8/mt) compared to July 18, standing at RMB 4,307/mt ($604/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 25, HRC futures at Shanghai Futures Exchange are standing at RMB 3,518/mt ($493/mt), decreasing by RMB 155/mt ($22/mt) or 4.2 percent since July 18, while down 1.73 percent compared to the previous trading day, July 24.
$1 = RMB 7.1321
