Following a slight increase in ex-China hot dip galvanized (HDG) prices last week, this week most offers have seen declines on the high end mainly amid worse sentiments locally and declines in futures HRC prices.
Specifically, offers from large mills are heard at around $600-610/mt FOB for May shipment, edging down by $10/mt on the higher end of the range since February 27, though offer prices from smaller mills are heard at $590-595/mt FOB, against $590-605-mt FOB last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has decreased by $5/mt on average to $590-610/mt FOB.
During the given week, HDG prices in the Chinese domestic market have seen decreases amid declining HRC futures prices. Traders have chosen to sell at lower prices to bring in cash and ease financial pressure. Demand for HDG from downstream users has not been as good as market players had expected, exerting a negative impact on prices. Inventory of HDG has seen rises, increasing the pressures on the traders’ side. However, market participants still look forward to improved demand in the near future as March is the traditional peak season.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 24/mt ($3.3/mt) compared to February 27, standing at RMB 4,043/mt ($564/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 6, HRC futures at Shanghai Futures Exchange are standing at RMB 3,396/mt ($474/mt), decreasing by RMB 25/mt ($3.5/mt) or 0.7 percent since February 27, while up 0.35 percent compared to the previous trading day, March 5.
$1 = RMB 7.1692
