Ex-China hot dip galvanized (HDG) offer prices have moved up further in the past week, following the increasing trend in the previous week. Offers are at $595-610/mt FOB for late October delivery this week, up by $10/mt on average compared to one week ago amid the firm trend in the local market. At the same time, deal prices have been heard at $590-595/mt FOB, mostly to South America, moving up by $7.5/mt on average compared to the previous week.
“Bullish sentiments have prevailed among players in the HDG export market due to the high levels of iron ore prices and the rising trend in the local market. Though buyers are asking for lower prices, HDG producers have been unwilling to reduce their offers,” one trader said.
During the given week, high levels of iron ore prices have bolstered HDG prices, while traders have started to be cautious as regards the future market prospects amid the lack of decent levels of transaction activity. Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved up by RMB 17/mt ($2.4/mt) week on week to RMB 4,723/mt ($681/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 13, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 3,916/mt ($564/mt), increasing by RMB 6/mt ($0.9/mt) or 0.15 percent since August 5.
$1 = RMB 6.9429
