Ex-China hot dip galvanized (HDG) offer prices have been relatively stable in the past week, but the tradable level and some deal prices have been reported at lower levels, indicating that the overall mood has not improved yet, even though local HDG prices have seen some gradual increases.
Offers from mills this week are at $680/mt FOB for late January shipment, moving sideways compared to November 3 on average. Reference deal prices for ex-China HDG have been heard at $650-660/mt FOB, down by $20/mt compared to last week. But some rare deals were last week reported also at as low as $640/mt FOB to some destinations.
“The rebounding trend of HRC futures prices has bolstered HDG prices, though demand has remained sluggish,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have seen rises amid the rebounding trend of ferrous metal futures prices and increases in upstream products, in HRC and CRC prices, for example. However, transaction activities have not been as good as market players expected as demand is still slack. It is expected 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 risen by RMB 53/mt ($7.3/mt) compared to November 3 to RMB 4,813/mt ($664.6/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 10, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,627/mt (501/mt), increasing by RMB 51/mt ($7.04/mt) or 1.4 percent since November 3.
$1 = RMB 7.2422
