Ex-China hot dip galvanized (HDG) offer prices have continued their downtrend, while local HDG prices have also indicated decreases.
Offers from mills this week are at $680/mt FOB for late January shipment, down by on average $20/mt compared to October 27. Reference deal prices for ex-China HDG have been heard at $670-680/mt, FOB, down by $10/mt compared to last week.
“Though the demand for HDG is expected to slacken in the near future, the rebounding trend in HRC futures prices over the past three trading days has provided support for the HDG market,” an international trader said.
During the given week, the demand for HDG from downstream users has the offseason has started following September and October. Cautious sentiment has prevailed among market players, exerting a negative impact on the HDG market. However, the inventory of HDG has been at a relatively low level, which may bolster prices in the near future. It is expected that HDG prices in the Chinese domestic market will continue their weak trend in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 43/mt ($5.9/mt) compared to October 27 to RMB 4,760/mt ($657/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 3, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,576/mt (493/mt), decreasing by RMB 38/mt ($5.2/mt) or 1.1 percent since October 27.
$1 = RMB 7.2472