Ex-China hot dip galvanized (HDG) prices have remained stable this week despite some turbulence in the domestic HDG and HRC futures markets in China.
Specifically, offers from large mills are still heard at around $725-730/mt FOB for April shipment, remaining stable compared to February 22. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $675-685/mt FOB, moving sideways week on week.
During the given week, HDG prices in the Chinese domestic market have seen slight declines amid the fluctuating trend seen in HRC futures prices. Recently, downstream users have gradually resumed production, exerting a positive impact on the HDG market. However, inventory of HDG is still at relatively high levels, weakening the support for HDG prices. It may take more time for market players to observe an actual improvement in demand.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 16/mt ($2.3/mt) compared to February 22, standing at RMB 4,737/mt ($667/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 29, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,911/mt ($551/mt), increasing by RMB 9/mt ($11.5/mt) or 1.3 percent compared to February 21, while indicating a decline of 0.38 percent compared to the previous trading day (February 28).
$1 = RMB 7.1036
