Ex-China hot dip galvanized (HDG) offer prices have shown a slight increase amid better sentiments in the domestic market due to the stimulus policies issued by Chinese policymakers.
Offers from mills this week are at $705-715/mt FOB for late October shipment, increasing by $5/mt compared to August 31 on average. Meanwhile, reference deal prices for ex-China HDG have been heard at $675-705/mt FOB, as compared to $675-700/mt FOB last week.
“The relatively high levels of iron ore prices have provided support for HDG prices, and stimulus policies to boost the real estate sector have also bolstered the HDG market, though it need more time to see the situation of demand release in peak season,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved on an uptrend as China issued several stimulus policies to boost the real estate sector, which exerted a positive impact on market sentiments. However, the inventory levels of HDG have indicated slight rises, indicating that demand has not improved significantly so far. Market participants are waiting for changes in demand for HDG in the peak season of September. It is thought that HDG prices in the Chinese domestic market may move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 36/mt ($5.0/mt) compared to August 31, standing at RMB 4,903/mt ($681/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 7, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,880/mt (539/mt), moving sideways compared to that recorded on August 31, but down by RMB 28/mt ($3.8/mt) day on day.
$1 = RMB 7.1986
