Ex-China HDG offers have edged up over the past week amid rising HRC futures prices, while local HDG prices have also seen increases.
Specifically, offers from large Chinese mills have remained stable at around $575-585/mt FOB for February shipment, edging up by $5/mt over the past two weeks, while offer prices from smaller mills have been heard at $555-570/mt FOB, versus $540-565/mt FOB two weeks ago.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $555-585/mt FOB, versus $540-580/mt FOB recorded on December 25.
During the given period, HDG prices in the Chinese domestic market have seen slight rises amid increasing HRC futures prices. Meanwhile, prices of raw materials, including coking coal and coke futures, have continuously indicated strong rises, bolstering HDG prices from the cost side. In addition, following the New Year holiday, the stock market in China has been bullish, exerting a positive impact on market sentiments. However, demand for HDG from downstream users has remained slack during the traditional cold winter offseason, which will negatively affect prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 10/mt ($1.4/mt) compared to December 25, standing at RMB 3,893/mt ($555/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 8, HRC futures at Shanghai Futures Exchange are standing at RMB 3,317/mt ($472.5/mt), increasing by RMB 37/mt ($5.3/mt) or 1.1 percent since December 25, while up 0.48 percent compared to the previous trading day, January 7.
$1 = RMB 7.0197
