Ex-China hot dip galvanized (HDG) offer prices have moved down further this week given the continuous decreases in futures prices for HDG and raw material prices in China. Besides, Chinese suppliers have been decreasing prices for all major flat steel products, while the local market has also exerted additional pressure.
Offers from mills this week are at $800/mt FOB for late June shipment, moving down by $20/mt compared to April 6 on average. Reference deal prices for ex-China HDG have been heard at $790/mt FOB, versus $790-800/mt last week.
“The declining HRC futures prices have negatively affected the HDG market, while the decreasing trend in iron ore prices has also weakened the support for HDG prices, though market players still expect better demand from downstream users in the coming period,” an international trader said.
During the given week, ferrous metal futures prices have moved on a downward trend amid the weak selling performance in April, exerting a negative impact on the HDG market, and so most traders have chosen to sell at lower prices amid financial and inventory pressures. However, demand from downstream users has not shown signs of improving significantly.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 63/mt ($9.2/mt) compared to April 6, standing at RMB 4,813/mt ($701/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 13, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,957/mt (576/mt), decreasing by RMB 58/mt ($8.4/mt) or 1.4 percent since April 6.
$1 = RMB 6.8658
