Ex-China hot dip galvanized (HDG) prices have remained stable over the past week, though more pressure has been coming from the decreases seen in the local market and the downtrend of HRC futures prices.
Specifically, offers from large mills are still heard at around $655-665/mt FOB for August shipment, moving sideways compared to May 30. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $645-655/mt FOB, remaining stable compared to last week.
During the given week, HDG prices in the Chinese domestic market have declined amid the sluggish demand from downstream users. At the same time, HRC futures prices have moved down, exerting a negative impact on HDG prices. HRC prices in the spot market have decreased, weakening the support for the HDG market. Cautious sentiments have prevailed among market players, resulting in low transaction activities. It is expected that HDG prices in the Chinese domestic market will continue their downtrend in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 70/mt ($10/mt) compared to May 30, standing at RMB 4,567/mt ($643/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 6, HRC futures at Shanghai Futures Exchange are standing at RMB 3,828/mt ($539/mt), decreasing by RMB 35/mt ($5.0/mt) or 0.9 percent since May 30, while up 1.06 percent compared to the previous trading day, June 5.
$1 = RMB 7.1108
