Ex-China hot dip galvanized (HDG) prices have moved sideways over the past week.
Specifically, offers from large mills are heard at around $620-625/mt FOB for October shipment, moving sideways compared to last week, though offer prices from smaller mills are heard at $570-580/mt FOB, remaining stable week on week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $570-625/mt FOB, versus $570-625/mt FOB last week.
During the given week, HDG prices have moved down amid the ongoing slack demand from downstream users, even against the backdrop of increasing HRC prices and rising ferrous metal futures prices since September 9. At the same time, insufficient speculative demand has weakened the support for HDG prices. However, market players cautiously consider that HDG prices may rebound in the near future following the rises in HRC prices. It is expected that HDG prices in the Chinese domestic market will likely edge up in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 53/mt ($7.4/mt) compared to September 5, standing at RMB 3,820/mt ($536.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 12, HRC futures at Shanghai Futures Exchange are standing at RMB 3,244/mt ($456/mt), increasing by RMB 118/mt ($26.0/mt) or 3.8 percent since September 5, while up 3.44 percent compared to the previous trading day, September 11.
$1 = RMB 7.1214
