Ex-China hot dip galvanized (HDG) offer prices have indicated a rising trend over the past week as suppliers have been increasing prices for all major flat steel products, while the local market has also provided some support.
Offers from mills this week are at $760-770/mt FOB for late October shipment, rising by $10/mt compared to August 4 on average. Reference deal prices for ex-China HDG have been heard at $750/mt, FOB, up $10/mt compared to last week.
“The increasing trend in local HDG prices and HRC futures prices has bolstered ex-China HDG offer prices, while market players are still cautious as regards the future market prospects,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have edged up amid the rising trend of HRC futures prices. However, demand from downstream users has remained slack, while market players have mostly held cautious sentiments as regards the future market prospects. It is thought that HDG prices in the Chinese domestic market will likely 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 100/mt ($15/mt) compared to August 4 to RMB 4,893/mt ($726/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 11, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,056/mt (602/mt), increasing by RMB 99/mt ($14.7/mt) or 2.5 percent since August 4.
$1 = RMB 6.7324