Ex-China hot dip galvanized (HDG) prices have increased slightly over the past week amid the better mood in the hot rolled coil (HRC) and cold rolled coil (CRC) markets, coupled with higher HRC futures prices in China.
Specifically, offers from large mills are heard at around $590-620/mt FOB for March shipment, increasing by $10-15/mt since January 16, though offer prices from smaller mills are heard at $580-590/mt FOB, against $565-575/mt FOB last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $580-620/mt FOB, versus $565-605/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have moved on a stable trend as most market players have left the market for the holiday. Transaction activities have been increasingly quiet. Some private sector HDG producers will implement maintenance works lasting 10-15 days, which will provide support for prices from the supply side. It is expected that HDG prices in the Chinese domestic market will continue their stable trend in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have remained stable compared to January 16, standing at RMB 4,073/mt ($568/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 23, HRC futures at Shanghai Futures Exchange are standing at RMB 3,457/mt ($482/mt), increasing by RMB 10/mt ($1.4/mt) or 0.3 percent since January 16, while up 0.46 percent compared to the previous trading day, January 22.
$1 = RMB 7.1708