Ex-China hot dip galvanized (HDG) offer prices have remained stable amid the fluctuating trend in HRC futures prices.
Offers from mills this week are at $700-710/mt FOB for late October shipment, remaining stable compared to August 17 on average. Meanwhile, reference deal prices for ex-China HDG have been heard at $675-700/mt FOB, same as last week, though several offers at around $660-663/mt FOB have been also reported from traders this week.
“The increasing iron ore prices provided certain support to HDG prices from cost side, while demand hasn’t improved yet,” an international trader said.
During the given week, although the demand for HDG from downstream users has remained slack, HDG prices in the Chinese domestic market edged up amid the support from continuous rises seen in iron ore prices. Meanwhile, according to sources, the anticipated production restrictions may bolster HDG prices to some degree. At the same time, market players expect better demand in the near future as the traditional peak season of September and October is approaching.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 40/mt ($5.6/mt) compared to August 17, standing at RMB 4,890/mt ($679/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 24, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,884/mt (540/mt), decreasing by RMB 40/mt ($5.6/mt) or 1.0 percent since August 17 and down by RMB 62/mt ($8.5/mt) from the yesterday’s settled price.
$1 = RMB 7.1886
