Ex-China hot dip galvanized (HDG) prices have seen slight declines this week amid decreasing HRC futures prices and declining HDG prices in the local market.
Specifically, offers from large mills are still heard at around $735-740/mt FOB for March shipment, in line with last week.
Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $697-720/mt FOB, versus $710-730/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have declined amid decreasing HRC futures prices. At the same time, the increasing supply has also weakened HDG prices. Market players are pessimistic as regards the future prospects for the HDG market. Moreover, iron ore and coke prices have also moved down. On January 11, major Chinese steelmaker Baosteel announced stable HDG prices for delivery in February, bolstering prices to a certain degree. It is expected that HDG prices in the Chinese domestic market will edge down slightly further in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 50/mt ($7/mt) compared to January 4, standing at RMB 4,797/mt ($676/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 11, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,041/mt ($569/mt), decreasing by RMB 106/mt ($14.9/mt) or 2.6 percent compared to January 4, while indicating a rise of 0.41 percent compared to the previous trading day (January 10).
$1 = RMB 7.1087
