Ex-China hot dip galvanized (HDG) offer prices have moved up over the past week. Offers are at $1,010-1,030/mt FOB for late September shipment this week, up by $30/mt week on week on average.
“Ex-China HDG prices have moved up amid the firm trend of raw material prices and the increasing trends of ferrous metal futures and local HDG prices,” an international trader said.
Though mills have been targeting deals at not below $990/mt FOB, demand from overseas buyers has remained slack, and so it is expected that ex-China HDG prices may fluctuate within a limited range. Some sources believe that the workable prices should be $920-940/mt FOB or so.
During the given week, HDG prices in the Chinese domestic market have seen rises due to increasing ferrous metal futures prices and relatively high iron ore prices. However, demand from downstream users has remained slack in the traditional offseason. It is thought that HDG prices in the Chinese domestic market will edge up slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 60/mt ($9.3/mt) week on week at RMB 6,540/mt ($1,011/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 8, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,750/mt ($889/mt), increasing by RMB 322/mt ($41.4/mt) or 5.9 percent since July 1.
$1 = RMB 6.4705
