Ex-China hot dip galvanized (HDG) offer prices have moved sideways given the still slow demand globally. At the same time, market insiders have been more positive in terms of the future outlook given the recovery of local HDG prices and higher offers for HRC futures in China.
Offers from mills this week are at $705-715/mt FOB for late September shipment, remaining stable compared to July 13 on average. Reference deal prices for ex-China HDG have been heard at $675-705/mt, FOB, also moving sideways compared to last week.
“The ongoing slack demand has exerted a negative impact on the HDG market, though the increasing HRC futures prices have provided some support for the HDG market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved up amid increasing HRC futures prices and the improved sentiments among market players. Currently, supply of HDG is tight and so traders have been willing to raise their offer prices. However, demand has remained slack in the traditional hot summer offseason, which will exert a negative impact on HDG prices. It is thought that HDG prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 63/mt ($8.8/mt) compared to July 6, standing at RMB 4,663/mt ($652.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 20, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,887/mt (544/mt), increasing by RMB 58/mt ($8.1/mt) or 1.51 percent since July 13.
$1 = RMB 7.1466
