Ex-China hot dip galvanized (HDG) offer prices have mainly been stable over the past week, but sentiment and trading activity have improved, following the rebound in futures prices. Offers from large mills are at $910-920/mt FOB for late February shipment this week, moving sideways week on week on average. In this range a number of bookings have been reported to South America and Asia.
“Following slight rises over the previous week, ex-China HDG offer prices have moved sideways, but sentiment is supported by the rebounding trend in HRC futures prices,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have declined amid the slack demand from downstream users and prevailing cautious sentiments among market players. But HRC futures prices have indicated a rebounding trend, which may positively affect the HDG market in the near future.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 33/mt ($5.2/mt) week on week to RMB 5,843/mt ($918/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 16, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,719/mt (741.5/mt), increasing by RMB 276/mt ($43.4/mt) or 6.2 percent since December 9.
$1 = RMB 6.3637
