Ex-China hot dip galvanized (HDG) prices have moved sideways in the past week following continuous fluctuations in HRC futures prices in China.
Specifically, offers from large mills are heard at around $595-600/mt FOB for June shipment, moving sideways since March 27, though offer prices from smaller mills are heard at $585-590/mt FOB, remaining stable compared to the previous week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has remained unchanged on average to $585-600/mt FOB.
During the given week, HDG prices in the Chinese domestic market have edged up slightly amid the improved demand from downstream users. Traders’ sentiments have improved to a certain degree as inventory of HDG has decreased. Some buyers have concluded certain purchases ahead of the Tomb Sweeping Day holiday (April 4-6), resulting in increased transaction activities in the given week. However, market players are concerned regarding demand for HDG after the holiday, especially amid the negative impact of the reciprocal tariffs imposed by the US. It is thought that HDG prices in the Chinese domestic market may edge up slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have increased by RMB 34/mt ($5/mt) compared to March 27, standing at RMB 4,057/mt ($566/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 3, HRC futures at Shanghai Futures Exchange are standing at RMB 3,360/mt ($469/mt), decreasing by RMB 21/mt ($2.9/mt) or 0.6 percent since March 27, while down 0.83 percent compared to the previous trading day, April 2.
$1 = RMB 7.1889
