Ex-China hot dip galvanized (HDG) offer prices have moved up sharply in the past week, following a rising trend in the previous week. Offers are at $785-790/mt FOB for late March delivery this week, edging up by $40-50/mt on average compared to one week ago amid the significant increases in local HDG prices, rising HRC futures prices, and surging iron ore prices, while deal prices have been heard at $765-770/mt FOB, mostly to South America and Southeast Asia, edging up by $35/mt compared to the previous week.
“The sharply rising local HDG prices and tight supply have pushed up ex-China HDG offer prices in the given week, even though ex-China HDG is still heard to be more competitive in the export market compared to ex-Vietnam HDG, with a deal heard at $950/mt CFR Europe, while traders are optimistic towards the prospects for the market after the Christmas holiday,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved up significantly amid rising iron ore prices and the supply shortage. Meanwhile, inventory of HDG has been relatively low, also bolstering prices. At the same time, major Chinese steelmaker Hesteel has raised its ex-works prices for HDG by RMB 500/mt ($76.5/mt), exerting a positive impact on the HDG market. It is thought that HDG prices in the Chinese domestic market will edge up further in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 267/mt ($41/mt) week on week to RMB 5,953/mt ($911/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 17, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 4,446/mt ($680/mt), increasing by RMB 98/mt ($15/mt) or 2.25 percent since December 10.
$1 = RMB 6.5362
