Ex-China hot dip galvanized (HDG) offer prices have moved down over the past week, as suppliers have been facing a lack of bookings following the cancellation of the export tax rebate as of August 1. Offers are at $1,130-1,150/mt FOB for late November shipment this week, moving down by $25/mt week on week on average.
“Steelmakers have been seeking to get orders from overseas buyers, and so they have cut export offer prices for HDG,” an international trader said. Nevertheless, real deals are possible only at below $1,100/mt FOB as there are rising freight rates and overall consumption in Southeast Asia remains reduced.
During the given week, HDG prices in the Chinese domestic market have risen slightly amid rising HRC futures prices and the prevailing bullish sentiments among market players. However, the demand for HDG has been slacker than what market participants expected for the traditional peak season.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have increased by RMB 14/mt ($2.2/mt) week on week to RMB 6,810/mt ($1,054/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 9, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,893/mt (912/mt), increasing by RMB 322/mt ($50/mt) or 5.8 percent since September 2.
$1 = RMB 6.4615
