Ex-China hot dip galvanized (HDG) prices have remained unchanged over the past week.
Specifically, offers from large mills are still heard at around $630-640/mt FOB for October shipment, moving sideways on average compared to August 1. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $610-625/mt FOB, remaining stable compared to last week.
During the given week, HDG prices in the Chinese domestic market have moved down further amid slow inventory consumption, which has resulted in relatively high inventory levels. However, the supply of HDG to indicate significant declines, which will exert a negative impact on prices. Bearish sentiments have prevailed among market players amid the ongoing slack demand from downstream users. Moreover, decreasing HRC futures prices have weakened the support for HDG prices. 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 136/mt ($19/mt) compared to August 1, standing at RMB 4,097/mt ($575/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 8, HRC futures at Shanghai Futures Exchange are standing at RMB 3,415/mt ($479/mt), decreasing by RMB 90/mt ($12.6/mt) or 2.6 percent since August 1, while down 2.04 percent compared to the previous trading day, August 7.
$1 = RMB 7.146
