Ex-China hot dip galvanized (HDG) prices have moved sideways in the past week despite worse sentiments in the local HDG market.
Specifically, offers from large mills are heard at around $580-585/mt FOB for July shipment, moving sideways since June 5, though offer prices from smaller mills are heard at $570/mt FOB, also remaining stable compared to June 5.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $570-585/mt, the same as last week.
During the given week, HDG prices in the Chinese domestic market have fluctuated within a limited range amid the traditional offseason. Demand for HDG has been slack as it is currently the plum rainy season in the lower and middle reaches of the Yangtze River, while typhoon Wutip is also going to affect southern China and negatively impact prices. HDG producers’ capacity utilization rates have declined slightly, while inventory has also indicated decreases, reducing downward pressure. Major Chinese steelmaker Baowu Group has announced stable ex-works prices for HDG for delivery in July, bolstering spot prices to a certain degree. It is expected that HDG prices in the Chinese domestic market will edge down slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 13/mt ($1.8/mt) compared to June 5, standing at RMB 3,847/mt ($534/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 12, HRC futures at Shanghai Futures Exchange are standing at RMB 3,080/mt ($428/mt), increasing by RMB 3/mt ($0.4/mt) or 0.1 percent since June 5, while down 0.87 percent compared to the previous trading day, June 11.
$1 = RMB 7.1803