Ex-China hot dip galvanized (HDG) offer prices have been under pressure from weak demand seen lately in both the local and export markets. Offers are at $1,040-1,060/mt FOB for late November shipment this week, moving down by $35/mt week on week on average. The tradable level has been reported at the end of the offer range, but no fresh deals have been reported so far.
“The decreasing trend in the local market and the wait-and-see mood has negatively affected ex-China HDG offer prices,” an international trader said.
Some large mills from the east of China have suspended their export offers as energy consumption cuts are expected to impact production.
During the given week, HDG prices in the Chinese domestic market have edged down slightly amid the prevailing wait-and-see stance among market players. As the National Day holiday (October 1-7) is about to begin, demand has remained slack. It is thought that HDG prices in the Chinese domestic market will move sideways in the coming weeks.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 10/mt ($1.5/mt) week on week to RMB 6,796/mt ($1,049/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 30, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,713/mt (881/mt), increasing by RMB 101/mt ($15.6/mt) or 1.8 percent since September 23.
$1 = RMB 6.4854
