Ex-China hot dip galvanized (HDG) offer prices have indicated a rising trend amid the increases seen in HRC and CRC prices, though the rise in the local HDG market have been relatively small.
Offers from Chinese mills this week are at $690/mt FOB for late January shipment, up by $10/mt compared to November 10 on average. Reference deal prices for ex-China HDG have been heard at $660/mt FOB, while last week deals at as low as $640/mt FOB were possible.
“The increasing trend in HRC futures prices has exerted a positive impact on the HDG market, while the cold and rainy weather during winter may weaken the support for HDG prices,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have indicated an uptrend amid rising HRC futures prices. Following the rises in HDG prices, market players have been unwilling to conclude purchases at higher prices. Currently, rainy and cold weather has been impacting eastern China, which will negatively affect the demand for HDG. 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 risen by RMB 40/mt ($5.7/mt) compared to November 10 to RMB 4,853/mt ($686.4/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 17, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,801/mt (537.6/mt), rising by RMB 174/mt ($24.6/mt) or 4.8 percent since November 10.
$1 = RMB 7.0655
