Ex-China hot dip galvanized (HDG) prices have remained relatively stable in the given week, though some recovery has been seen in the local HDG market supported by higher HRC futures prices.
Specifically, offers from large mills are heard at around $595-600/mt FOB for June shipment, remaining stable since March 20, though offer prices from smaller mills are heard at $585-590/mt FOB, moving sideways compared to the previous week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has remained stable on average to $585-600/mt FOB.
During the given week, HDG prices in the Chinese domestic market have edged up amid the rising trend of HRC futures prices. Downstream users have been cautious in concluding purchases of HDG, resulting in lower transaction activities. However, major HDG producers’ capacity utilization rates have been at relatively high levels, negatively affecting prices. In the traditional peak season, demand for HDG is expected to improve, while producers are anticipated to implement certain production cuts, which may bolster prices to a certain degree.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have increased by RMB 27/mt ($3.8/mt) compared to March 20, standing at RMB 4,023/mt ($561/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 27, HRC futures at Shanghai Futures Exchange are standing at RMB 3,381/mt ($471.5/mt), increasing by RMB 24/mt ($3.3/mt) or 0.7 percent since March 20, while down 0.12 percent compared to the previous trading day, March 26.
$1 = RMB 7.1763
