Ex-China hot dip galvanized (HDG) offer prices have remained mainly stable from big mills. However, considering the continuous recovery of HRC futures prices and local HDG quotes, smaller mills and traders have slightly increased their HDG export offers.
Offers from mills this week are at $700-710/mt FOB for late July shipment, moving sideways compared to June 8 on average. Meanwhile, reference deal prices for ex-China HDG have been heard at $665-695/mt, FOB, versus $665-685/mt FOB last week.
“The rising iron ore prices and ferrous metal futures prices have bolstered HDG prices, and better sentiments among market players have also provided support for HDG prices,” an international trader said.
During the given week, average HDG prices in the Chinese domestic market have seen an increasing trend amid the rising trends of ferrous metal futures prices and iron ore prices. Meanwhile, sentiments among market players have improved, resulting in better transaction activities. At the same time, inventory of HDG has continued its declining trend, exerting a positive impact on prices. However, demand from downstream users is unlikely to see a significant improvement in the near future, which may negatively affect HDG prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 27/mt ($3.8/mt) compared to June 8, standing at RMB 4,677/mt ($654/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 15, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,861/mt (540/mt), increasing by RMB 111/mt ($12.1/mt) or 2.96 percent since June 8.
$1 = RMB 7.1489