Ex-China hot dip galvanized (HDG) prices have indicated slight declines on the high end in the past week.
Specifically, offers from large mills are heard at around $600-605/mt FOB for May shipment, edging down by $2.5/mt since March 6, though offer prices from smaller mills are heard at $590-595/mt FOB, moving sideways compared to the previous week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has decreased by $2.5/mt on average to $590-605/mt FOB.
During the given week, HDG prices in the Chinese domestic market have declined slightly amid decreasing HRC prices. Traders’ sentiments have been negatively affected by the lack of release of demand. HRC futures prices rose by 1.7 percent on March 13, bolstering market sentiments to a certain degree. However, the stimulus policies following the Two Sessions meetings have not been as good as market players had expected, which will exert a negative impact on the HDG market. It is expected that HDG prices in the Chinese domestic market will edge up slightly in the coming week amid the traditional peak season.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 10/mt ($1.4/mt) compared to March 6, standing at RMB 4,033/mt ($562.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 13, HRC futures at Shanghai Futures Exchange are standing at RMB 3,413/mt ($476/mt), increasing by RMB 17/mt ($2.4/mt) or 0.5 percent since March 6, while up 1.7 percent compared to the previous trading day, March 12.
$1 = RMB 7.1728
