Ex-China hot dip galvanized (HDG) prices have remained relatively stable in the past week as demand has not recovered yet, while prices in the local HDG market have been lower.
Specifically, offers from large mills are heard at around $590-620/mt FOB for March shipment, moving sideways since February 6, though offer prices from smaller mills and traders are heard at $585-602/mt FOB for end-of-March shipment, against $580-590/mt FOB last week. As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $585-620/mt FOB.
During the given week, HDG prices in the Chinese domestic market have seen slight declines amid decreasing HRC futures prices. Demand for HDG from downstream users has not improved as much as market players had expected, exerting a negative impact on prices. However, major steelmakers, including Baosteel, Ansteel and Benxi Iron and Steel, have raised their local base prices for HDG for delivery in March by RMB 100/mt ($14/mt), which will bolster prices to a certain degree. It is expected that HDG prices in the Chinese domestic market will edge up slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 13/mt ($1.8/mt) compared to February 6, standing at RMB 4,060/mt ($566/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 13, HRC futures at Shanghai Futures Exchange are standing at RMB 3,387/mt ($472/mt), decreasing by RMB 65/mt ($9.1/mt) or 1.9 percent since February 6, while down 0.32 percent compared to the previous trading day, February 12.
$1 = RMB 7.1719
