Ex-China hot dip galvanized (HDG) prices have moved up slightly over the past week given better sentiments mounting in the HRC and CRC segments supported by higher futures HRC prices in China.
Specifically, offers from large mills have been heard at around $580-600/mt FOB for September shipment, moving up by $15/mt on the higher end since July 10, while offer prices from smaller mills have been voiced heard at $570-590/mt FOB, also increasing by $15/mt on the higher end over the past week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has been heard at $570-600/mt, versus $570-585/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have edged up slightly amid the increasing HRC futures prices. There were limited resources circulating in the spot market, bolstering HDG prices to a certain degree. Recently, Chinese major steelmakers, including Baowu Group and Anshan Iron & Steel Group raised their ex-works prices of HDG for delivery in August by RMB 100/mt ($14/mt), exerting a positive impact on market sentiments. However, the demand for HDG from downstream users has not seen any improvement yet in the traditional off-season. It is expected that HDG prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have edged up by RMB 20/mt ($2.8/mt) compared to July 10, standing at RMB 3,887/mt ($544/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 17, HRC futures at Shanghai Futures Exchange are standing at RMB 3,292/mt ($460/mt), moving up by RMB 30/mt ($4.2/mt) or 0.9 percent since July 10, while up 1.23 percent compared to the previous trading day, July 16.
$1 = RMB 7.1461
