Ex-China HDG offers have indicated slight rises on the lower end of the price range over the past week amid higher freight costs caused by the war in the Middle East.
Specifically, offers from large Chinese mills stand at $615-625/mt FOB for May shipment, moving sideways compared to April 2, while offer prices from smaller mills have been heard at $610-615/mt FOB, versus $605-610/mt FOB last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $610-625/mt FOB, versus $605-625/mt FOB recorded on April 2.
During the given period, HDG prices in the Chinese domestic market have fluctuated within a limited range amid slightly decreases in HRC futures prices. Demand for HDG from downstream users has not been as good as expected, resulting in the prevailing cautious sentiments among market players. Downstream users have mostly purchased just in line with their needs, while the pace of inventory destocking has remained subdued. It is expected that HDG prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 3/mt ($0.4/mt) compared to April 2, standing at RMB 4,027/mt ($584/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 9, HRC futures at Shanghai Futures Exchange are standing at RMB 3,270/mt ($475/mt), decreasing by RMB 7/mt ($1/mt) or 0.2 percent since April 2, while down 0.15 percent compared to the previous trading day, April 8.
$1 = RMB 6.8649