Ex-China hot dip galvanized (HDG) offer prices have moved up significantly in the past week. Offers are at $625-640/mt FOB for late November delivery this week, up by $12.5/mt on average compared to one week ago amid the firm trend in the local market, high levels of iron ore prices and the appreciation of the Chinese currency.
At the same time, reference deal prices have been heard at $625/mt FOB, with South America being targeted, while no deal has been heard at the current high levels. Reference deal prices for sellers have moved up by $25/mt on average compared to the previous week, but most bids are still at $615-620/mt FOB maximum.
“Following the quick rises in the Chinese currency, which has surged to a 15-month high, steelmakers raised export prices sharply, while buyers in overseas markets have not accepted the increases yet,” an international trader said.
During the given week, HDG prices have moved up sharply amid the increasing iron ore and hot rolled coil prices. Meanwhile, demand for HDG has not indicated any significant improvement, while high levels of booking prices from HDG producers have bolstered prices in the spot market. However, traders said it is not easy to sell at the current high levels. It is thought that HDG prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have risen by RMB 57/mt ($8.3/mt) week on week at RMB 4,860/mt ($710.5/mt) ex-warehouse, according to SteelOrbis’ information.
At the same time, the average CRC price in the domestic market in China has risen by RMB 103/mt ($15/mt) this week, contributing to the uptrend in the HDG segment
$1 = RMB 6.8319
