Ex-China hot dip galvanized (HDG) offer prices have moved sideways amid the decreasing trends in HRC futures prices and local HDG prices. After the increase announced last week, the tradable levels have increased slightly, but demand and the sentiment have not changed much.
Offers from mills this week are at $750/mt FOB for late November shipment, moving sideways compared to September 8 on average. Reference deal prices for ex-China HDG have been heard at $710-720/mt FOB, the lower end of the range up by $10/mt over the week. Moreover, a number of mills have been targeting $740/mt FOB, which, however, is far from been acceptable so far.
“The HRC futures prices edged up first while moved down over the past two trading days, negatively affecting HDG prices, while the slack demand due to the typhoon Muifa also exerted a negative impact on the HDG market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have seen declines amid the decreasing HRC futures prices. The typhoon Muifa had a negative impact on China and weakened the demand for HDG. Moreover, transaction activities of HDG have not been so good, thereby part of traders chose to cut prices for sale and bring in cash. It is thought that HDG prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 46/mt ($6.66/mt) compared to September 8 to RMB 4,700/mt ($680/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 15, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,778/mt (547.5/mt), decreasing by RMB 24/mt ($3.5/mt) or 0.63 percent since September 8.
$1 = RMB 6.9101