Ex-China hot dip galvanized (HDG) prices have moved sideways over the past week amid decreasing local HDG prices and declining HRC futures prices.
Specifically, offers from large mills are still heard at around $640-655/mt FOB for August shipment, moving sideways on average compared to June 20. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $635-645/mt FOB, remaining stable compared to last week.
During the given week, HDG prices in the Chinese domestic market have edged down amid the sluggish demand from downstream users. Meanwhile, most sellers have reduced selling prices to stimulate deals, aiming to bring in cash towards the end of month. However, a few inquiries have been heard, resulting in declining transaction activities. Moreover, heavy rainfall and hot weather conditions will continue to exert a negative impact on the HDG market. 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 lost RMB 27/mt ($3.8/mt) compared to June 20, standing at RMB 4,490/mt ($630/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 27, HRC futures at Shanghai Futures Exchange are standing at RMB 3,735/mt ($524/mt), decreasing by RMB 41/mt ($5.7/mt) or 1.1 percent since June 20, while up 0.05 percent compared to the previous trading day, June 26.
$1 = RMB 7.127
