Ex-China hot dip galvanized (HDG) prices have moved sideways over the past week. However, the general mood has been worsening this week given the declines seen in the local market and the decreasing trend of HRC futures prices.
Specifically, offers from large mills are still heard at around $655-665/mt FOB for July shipment, moving sideways compared to May 23. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $645-650/mt FOB, also remaining stable compared to last week.
During the given week, HRC futures price have declined, exerting a negative impact on market sentiments. Though Shanghai and Shenzhen have lifted restriction policies on housing purchases, market players are still skeptical about the future. Demand from downstream users has been slack, resulting in cautious sentiments prevailing among market players. Transaction activities in May have shrunk compared to April, also negatively affecting traders’ willingness to build up stocks. It is thought that HDG prices in the Chinese domestic market will likely edge down in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 66/mt ($9.3/mt) compared to May 23, standing at RMB 4,637/mt ($652/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 30, HRC futures at Shanghai Futures Exchange are standing at RMB 3,863/mt ($548/mt), decreasing by RMB 36/mt ($5.1/mt) or 0.1 percent since May 23, while down 0.1 percent compared to the previous trading day, May 29.
$1 = RMB 7.1111
