Ex-China hot dip galvanized (HDG) prices have remained unchanged this week, while, following a slight recovery in futures HRC prices last week, this week the futures market has been showing a decline, affecting local HDG prices in China.
Specifically, offers from large mills are still heard at around $725-730/mt FOB for April shipment, remaining stable compared to last week. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $690-710/mt FOB, keeping in line with those recorded last week.
During the given week, most downstream users have already exited the market ahead of the Chinese New Year holiday, resulting in quiet transaction activities. At the same time, inventory of HDG has risen quickly, exerting a negative impact on prices. Moreover, HRC futures prices have seen continuous decreases since last Friday, also negatively affecting market sentiments.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 13/mt compared to January 25, standing at RMB 4,767/mt ($671.4/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 1, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,004/mt ($564/mt), decreasing by RMB 93/mt ($13.1 /mt) or 2.3 percent compared to January 25, while indicating a drop of 0.52 percent compared to the previous trading day (January 31).
$1 = RMB 7.1044
