Ex-China hot dip galvanized (HDG) offer prices have moved up sharply over the past two weeks. Offers from large mills are at $960-980/mt FOB for late April shipment this week, moving up by $55/mt compared to January 27 on average.
“Following the Chinese New Year holiday, market players have been optimistic towards the prospects for the future market amid anticipated better demand and the increasing trend of ferrous metal futures prices,” an international trader said. Though there have been no new deals reported in the export market this week, demand is also expected to improve gradually in the coming week and deal prices may reach $950-960/mt FOB, up from the tradable levels of $900-910/mt FOB before the holiday.
During the given week, HDG prices in the Chinese domestic market have risen slightly amid increasing HRC futures prices and the prevailing bullish sentiments among market players following the long Chinese New Year holiday. Most downstream users are not yet back in the market, and so demand will improve further in the coming period.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have risen by RMB 67/mt compared to January 27, standing at RMB 5,870/mt ($923/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 10, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,069/mt (797/mt), rising by RMB 274/mt ($43/mt) or 5.7 percent since January 27.
$1 = RMB 6.3599
