Ex-China hot dip galvanized (HDG) prices have moved sideways over the past week following fluctuations in the futures HRC prices in China, which increased sharpy last week, but by Thursday, July 31 have dropped again.
Specifically, offers from large mills have been heard at around $585-610/mt FOB for September shipment, moving sideways since July 24, while offer prices from smaller mills have been voiced at $575-595/mt FOB, remaining stable 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, the same as last week.
Following price increases over the previous period, HDG prices in the Chinese domestic market have moved down as the positive effect from policy side, such as several government departments in China jointly issued a draft revision of the Implementation Regulations of the Price Law for public comment, has been digested. Currently, the demand from downstream users dominated the price trends. Heavy rains in Beijing caused floods, exerting a negative impact on market sentiments. Meanwhile, typhoon CO-MAY also negatively affected the steel market due to heavy rains in eastern China. Currently, the inventory of HDG has been at relatively low levels, providing certain support to its prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 77/mt ($10.8/mt) compared to July 24, standing at RMB 3,880/mt ($543/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 31, HRC futures at Shanghai Futures Exchange are standing at RMB 3,390/mt ($474/mt), moving down by RMB 66/mt ($9.2/mt) or 1.9 percent since July 24, while down 3.56 percent compared to the previous trading day, July 30.
$1 = RMB 7.1494