Ex-China hot dip galvanized (HDG) prices have moved sideways over the past week, while local prices of HDG have started to show signs of a recovery, while hot rolled coil (HRC) futures prices in China have also been higher.
Specifically, offers from large mills are heard at around $620/mt FOB for October shipment, against $620-625/mt FOB last week, though offer prices from smaller mills are heard at $570-580/mt FOB, the same as last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $570-620/mt FOB, versus $570-625/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have edged up slightly amid the increases seen in HRC futures prices. The US has announced an interest rate cut of 50 basis points, firmly bolstering market sentiments. At the same time, downstream users may build up some stocks ahead of the National Day holiday (October 1-7), which will exert a positive impact on HDG prices in the near future. However, cautious sentiments have still prevailed among market players. It is thought that HDG prices in the Chinese domestic market will likely move on an uptrend in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 10/mt ($1.4/mt) compared to September 12, standing at RMB 3,830/mt ($539/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 19, HRC futures at Shanghai Futures Exchange are standing at RMB 3,249/mt ($456/mt), increasing by RMB 5/mt ($0.7/mt) or 0.15 percent since September 12, while up 1.03 percent compared to the previous trading day, September 18.
