Ex-China hot dip galvanized (HDG) prices have moved sideways over the past two weeks, though market sentiments have improved slightly in the local HDG market.
Specifically, offers from large mills are still heard at around $665-675/mt FOB for July shipment, remaining stable compared to April 25. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $660/mt FOB, moving sideways on average compared to April 25.
During the given week, booking costs from state-owned big steelmakers have not declined, bolstering HDG prices. At the same time, HDG supplies arriving in the market have been on the tight side, exerting a positive impact on prices. Following the Labor Day holiday, HRC futures prices edged up first, but have moved down over the past two trading days, reflecting the caution in the market as regards the future trend. It is expected 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 gained RMB 6/mt ($1/mt) compared to April 25, standing at RMB 4,693/mt ($661/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 9, HRC futures at Shanghai Futures Exchange are standing at RMB 3,807/mt ($536/mt), decreasing by RMB 20/mt ($2.8/mt) or 0.5 percent since April 25, while down 0.7 percent compared to the previous trading day, May 8.
$1 = RMB 7.1028
