Ex-China hot dip galvanized (HDG) prices have moved sideways this week, while sentiments improved slightly further in the local market.
Specifically, offers from large mills are still heard at around $640-650/mt FOB for May shipment, moving sideways compared to April 4. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $635/mt FOB, remaining stable on average compared to last week, but down by $5/mt over the past two weeks.
During the given week, HDG prices in the Chinese domestic market moved on a rising trend amid the increasing HRC futures prices. Meanwhile, rises in HRC and CRC prices bolstered HDG prices to a certain degree. At the same time, the demand for HDG improved, exerting a positive impact on its prices. However, major Chinese steelmaker Baosteel has announced that it has cut its HDG prices by RMB 100/mt ($14/mt) for delivery in May, weakening the support to market sentiments. It is expected that HDG prices in the Chinese domestic market will fluctuate within a limited range with positive bias in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 60/mt ($8.5/mt) compared to March 28, standing at RMB 4,663/mt ($657/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 11, HRC futures at Shanghai Futures Exchange are standing at RMB 3,761/mt ($530/mt), increasing by RMB 69/mt ($9.7/mt) or 1.9 percent since March 28, while up 0.29 percent compared to the previous trading day, April 10.
$1 = RMB 7.0968