Ex-China hot dip galvanized (HDG) prices have edged up slightly in the past week amid improved sentiments and increasing HRC futures prices.
Specifically, offers from large mills are heard at around $595-620/mt FOB for April shipment, edging up by $2.5/mt since February 13, though offer prices from smaller mills are heard at $585-605/mt FOB, increasing by $3/mt on the higher end of the range week on week. As a result, the SteelOrbis reference price for ex-China Z120 HDG has remained at $585-620/mt FOB.
During the given week, HDG prices in the Chinese domestic market have moved up amid increasing HRC futures prices and improved market sentiments. The time for holding the NPC & CPPCC meetings has been confirmed for March 4-5, which has bolstered market sentiments. At the same time, the demand for HDG from downstream users has improved gradually, which will likely result in declines in inventory levels and provides firm support for prices. Moreover, several major Chinese steelmakers have hiked HDG prices by RMB 100/mt ($14/mt) for delivery in March, also exerting a positive impact on prices. It is thought that HDG prices in the Chinese domestic market will see slight rises in the coming week amid increasing production.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have increased by RMB 23/mt ($3.2/mt) compared to February 13, standing at RMB 4,083/mt ($569.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 20, HRC futures at Shanghai Futures Exchange are standing at RMB 3,468/mt ($484/mt), rising by RMB 81/mt ($11.3/mt) or 2.4 percent since February 13, while up 1.02 percent compared to the previous trading day, February 19.
$1 = RMB 7.1712