Ex-China hot dip galvanized (HDG) prices have seen slight declines over the past week following lower prices for cold rolled (CRC) and hot rolled coils (HRC), coupled with the worse mood in the local HDG market.
Specifically, offers from large mills are still heard at around $635-645/mt FOB for August shipment, edging down by $2.5/mt on average compared to July 4. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $630-635/mt FOB, decreasing by $2.5/mt compared to last week.
During the given week, HDG prices in the Chinese domestic market have moved on a downtrend amid declining HRC futures prices. At the same time, demand for HDG has not seen any significant improvement, exerting a negative impact on prices. Most traders chose to sell at lower prices to reduce inventory levels. Moreover, import iron ore prices have declined significantly in the given week, weakening support for HDG prices from the cost side. 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 86/mt ($12.2/mt) compared to July 3, standing at RMB 4,427/mt ($620.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 11, HRC futures at Shanghai Futures Exchange are standing at RMB 3,703/mt ($519/mt), decreasing by RMB 98/mt ($14/mt) or 2.6 percent since July 4, while up 0.24 percent compared to the previous trading day, July 10.
$1 = RMB 7.1339
