Ex-China hot dip galvanized (HDG) prices have moved up in the past week amid increasing HRC futures prices in China.
Specifically, offers from large mills are heard at around $580-585/mt FOB for August shipment, up $10/mt since June 26, though offer prices from smaller mills are heard at $570-575/mt FOB, moving up by $10/mt compared to June 26.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $560-575/mt, versus the price of $560-565/mt FOB heard last week.
During the given week, HDG prices in the Chinese domestic market have moved sideways, while market players have started to be confident as regards the future prospects for the HDG market. The Central Financial Committee (CFCC) stated that China will focus on Chinese enterprises’ low-priced and unorganized competition, aiming to regulate excessive competition. Market sentiments have improved, exerting a positive impact on the HDG market. HDG producers’ capacity utilization rates have decreased compared to the previous period, reducing supply and providing support for prices. It is thought that HDG prices in the Chinese domestic market will edge up in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have remained stable compared to June 26, standing at RMB 3,843/mt ($537/mt) ex-warehouse, according to SteelOrbis’ information.
HRC futures at Shanghai Futures Exchange are standing at RMB 3,208/mt ($448/mt), moving up by RMB 105/mt ($14.7/mt) since June 26.
$1 = RMB 7.1523
