Ex-China hot dip galvanized (HDG) prices have moved sideways over the past week following fluctuations in HRC futures prices in China and still weak demand overseas, even though local prices for HDG have shown a slight upward bias.
Specifically, offers from large mills are heard at around $590-620/mt FOB for January shipment, moving sideways on average compared to November 28, though offer prices from smaller mills are heard at $590/mt FOB.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $590-620/mt FOB, the same as last week.
During the given week, HDG prices in the Chinese domestic market have seen slight rises amid improved transaction activities and tight supply. Inventories of HDG have been at relatively low levels, bolstering prices to a certain degree. Traders expect stock replenishment in December, which will exert a positive impact on HDG prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 16/mt ($2.2/mt) compared to November 28, standing at RMB 4,063/mt ($565/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 5, HRC futures at Shanghai Futures Exchange are standing at RMB 3,465/mt ($482/mt), decreasing by RMB 9/mt ($1.3/mt) or 0.26 percent since November 28, while down 1.53 percent compared to the previous trading day, December 4.
$1 = RMB 7.1879