Ex-China hot dip galvanized (HDG) prices have seen rises over the past week amid increasing HRC futures prices in China.
Specifically, offers from large mills have been heard at around $585-610/mt FOB for September shipment, moving up by $5-10/mt since July 17, while offer prices from smaller mills have been voiced at $575-595/mt FOB, increasing by $5/mt on average over the past week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has been heard at $575-610/mt, versus $570-600/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have moved up amid rising HRC futures prices. Some market players suspended sales activities due to the trading volume exceeding normal levels. Inventory of HDG has been at a relatively low level, bolstering prices firmly. At the same time, there have been limited HDG supplies circulating in the spot market, which has provided support for prices. Moreover, coke prices are expected to move up further, which will exert a positive impact on HDG prices from the cost side. It is thought that HDG prices in the Chinese domestic market will edge up slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have risen by RMB 70/mt ($10/mt) compared to July 17, standing at RMB 3,957/mt ($554/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 24, HRC futures at Shanghai Futures Exchange are standing at RMB 3,456/mt ($460/mt), moving up by RMB 164mt ($23/mt) or 5.0 percent since July 17, while up 0.35 percent compared to the previous trading day, July 23.
$1 = RMB 7.1385
