Ex-China hot dip galvanized (HDG) offer prices have moved sideways, though sentiments in the market have improved amid the rises in futures prices lately.
Offers from mills this week are at $790/mt FOB for late April shipment, remaining stable compared to February 9 on average. Reference deal prices for ex-China HDG have been heard at $780/mt, FOB, remaining unchanged compared to last week.
“HRC futures prices have indicated continuous rises since February 14 following previous declines, indicating better sentiments among market players, while the rising inventory levels have exerted a negative impact on HDG prices,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved down as demand has not met expectations. Meanwhile, HDG producers have resumed production, resulting in increasing inventory levels. Currently, market players mostly hold an optimistic view of the prospects for the future HDG market, though more time may be needed for demand to be released. It is thought that HDG prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 53/mt ($7.7/mt) compared to February 9, standing at RMB 4,770/mt ($696/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 16, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,229/mt (617/mt), increasing by RMB 69/mt ($10.1/mt) or 1.7 percent since February 9.
$1 = RMB 6.8519
