Ex-China hot dip galvanized (HDG) prices have moved sideways after the long Chinese New Year holiday as most market players have not come back from the holiday yet.
Specifically, offers from large mills are heard at around $590-620/mt FOB for March shipment, remaining stable since January 23, though offer prices from smaller mills are heard at $580-590/mt FOB, the same as two weeks ago.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has remained stable at $580-620/mt FOB.
During the given week, HDG prices in the Chinese domestic market have moved sideways as most market participants are not back in the market yet. Transaction activities have been quiet, exerting a negative impact on the demand for HDG. Meanwhile, the inventory of HDG has been at a relatively low level, increasing support for prices. It is thought that prices in the Chinese domestic market will likely see a rebounding trend in the coming period.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have remained unchanged compared to January 23, standing at RMB 4,073/mt ($568/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 6, HRC futures at Shanghai Futures Exchange are standing at RMB 3,452/mt ($481.5/mt), decreasing by RMB 5/mt ($0.7/mt) or 0.14 percent since January 23, while up 0.67 percent compared to the previous trading day, February 5.
$1 = RMB 7.1691
