Ex-China hot dip galvanized (HDG) offer prices have moved sideways over the past week as trading in both the local and export markets has been almost at a halt ahead of the holiday. After the return in early February, further price increases are possible, according to market sources.
Offers from mills this week are at $780/mt FOB for late March shipment, moving sideways compared to January 12. Reference deal prices for ex-China HDG have been heard at $770/mt FOB, up slightly from $760-770/mt FOB last week.
“Rising iron ore prices have exerted a positive impact on HDG prices,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have remained stable as the Chinese New Year holiday (January 21-27) is about to begin, while most players have left the market, resulting in very quiet transaction activities, while firm iron ore prices have bolstered HDG prices from the cost side. It is expected that HDG prices in the Chinese domestic market will move sideways in the coming period.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved sideways compared to January 12 to RMB 4,856/mt ($717.6/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 19, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,224/mt (624/mt), rising by RMB 42/mt ($6.2/mt) or 1.0 percent since January 12.
$1 = RMB 6.7674