Ex-China hot dip galvanized (HDG) offer prices have moved down significantly over the past week, following the sharp fall in the local market. Offers from mills are at $1,100-1,120/mt FOB for late July shipment this week, up by $50/mt on average compared to a week before.
“Buyers from the overseas markets have not been interested in concluding purchases for ex-China HDG amid the sharp declining trend, while demand in the local market has been quite steady, which may bolster export offer prices to some extent,” an international trader said.
Following the latest decline, more deals are expected to be done in the export market in the coming week.
During the given week, domestic HDG prices have indicated big declines amid decreasing ferrous metal futures prices. Downstream users have gradually restarted purchases. Meanwhile, bearish sentiments have prevailed among market players. It is thought that HDG prices in the Chinese domestic market may continue to edge down in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 426/mt ($66/mt) week on week to RMB 7,120/mt ($1,104.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 20, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,555/mt (862/mt), decreasing by RMB 883/mt ($137/mt) or 13.7 percent since May 13.
$1 = RMB 6.4464
