Ex-China hot dip galvanized (HDG) offer prices have remained stable this week. Meanwhile following last weeks’ increases in local HDG prices on futures prices growth, domestic offers have rolled back this week on worse sentiments in the futures HRC market affected by higher temperature in the country.
Offers for HDG from Chinese mills this week are at $705-715/mt FOB for late September shipment, moving sideways compared to July 6 on average. Reference deal prices for ex-China HDG have been heard at $675-705/mt FOB, also remaining stable compared to last week. “The sluggish demand in offseason negatively affected HDG market, though Baosteel’s raising HDG prices for delivery in August bolstered market players’ sentiments,” an international trader said.
During the given week, HDG prices have seen a decreasing trend amid the slack demand from downstream users as July and August are the traditional offseason. Meanwhile, high temperature exerted a negative impact on market players’ sentiments. However, on July 11, major Chinese steelmaker Baosteel raised its prices of hot dip galvanized (HDG) by RMB 100/mt ($14/mt) for delivery in August, providing certain support to HDG market. It is expected that HDG prices in the Chinese domestic market may move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 60/mt ($8.4/mt) compared to July 6, standing at RMB 4,600/mt ($643/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 13, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,829/mt (535.5/mt), decreasing by RMB 31/mt ($4.3/mt) or 0.8 percent since July 6.
$1 = RMB 7.1527