Ex-China hot dip galvanized (HDG) offer prices have moved sideways while sentiments have been rather mixed in the market, given the continuous fluctuations in futures prices.
Offers from mills this week are at $700-710/mt FOB for late October shipment, moving sideways compared to August 24 on average. Reference deal prices for ex-China HDG have been heard at $675-700/mt FOB, while lower offers at $661-663/mt FOB from traders have kept circulating in the market.
“The uptrend in iron ore prices has bolstered HDG prices to some extent, while the adverse weather may negatively affect the market,” an international trader told SteelOrbis.
During the given week, HDG prices in the Chinese domestic market have indicated a fluctuating trend amid the slight changes in HRC futures prices. Currently, China is facing three typhoons, Saola, Haikui and Kirogi, which will exert a negative impact on the demand for HDG. Recently, China has issued several stimulus policies, including the reduction in stamp duties and the extension of the favorable individual income tax, which ought to boost market sentiments, though they have not taken effect yet. Market players are cautious as regards the future prospects for the HDG market. It is expected that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 23/mt ($3.2/mt) compared to August 24, standing at RMB 4,867/mt ($678/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 31, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,880/mt (540/mt), decreasing by RMB 4/mt ($0.55/mt), indicating a fluctuating trend since August 24.
$1 = RMB 7.1811
