Ex-China hot dip galvanized (HDG) offer prices have edged up slightly in the past week, following a downward trend earlier. Offers are at $625-650/mt FOB for December shipment this week, up by $5/mt on average compared to one week ago amid the sharply rising trend in the local market.
Deal prices have been heard at $625-630/mt FOB, moving up by $10/mt on average compared to the period before the holidays. The prevailing bullish sentiments among market players have provided solid support for ex-China HDG offer prices.
“Following the long holiday, since local demand and sales for HDG have been at decent levels, steelmakers have been more confident towards the prospect for the future market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have risen sharply amid the increases seen in HRC and CRC prices and the improvement in demand from downstream users. Meanwhile, inventory of HDG has been at relatively low levels, which also helps to bolster prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have risen by RMB 100/mt ($14.8/mt) week on week to RMB 4,890/mt ($725.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 15, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 3,725/mt ($553/mt), increasing by RMB 33/mt ($4.9/mt) or 0.9 percent since September 30.
$1 = RMB 6.7374
