Ex-China hot dip galvanized (HDG) prices have seen slight rises over the past week following a small rebound in HRC futures prices, though the local HDG market has remained stagnant.
Specifically, offers from large mills are heard at around $600-620/mt FOB for April shipment, edging up by $5/mt on the lower end of the range since February 20, though offer prices from smaller mills are heard at $590-605/mt FOB, increasing by $2.5/mt from the previous week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has risen to $590-620/mt FOB from $585-620/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have edged down slightly amid decreasing HRC futures prices. Demand for HDG from downstream users has been slack, causing traders to cut prices to reduce inventory levels. At the same time, several countries have announced antidumping duties or filed antidumping investigations against Chinese steel products, exerting a negative impact on market sentiments. However, market players still look forward to improved demand in the near future as the traditional peak season is approaching. 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 16/mt ($2.2/mt) compared to February 20, standing at RMB 4,067/mt ($567/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 27, HRC futures at Shanghai Futures Exchange are standing at RMB 3,421/mt ($477/mt), decreasing by RMB 47/mt ($6.6/mt) or 1.4 percent since February 20, while up 0.35 percent compared to the previous trading day, February 26.
$1 = RMB 7.174
