Ex-China HDG offers have edged up slightly on the lower end over the past week amid slight increases in local HDG prices.
Specifically, offers from large Chinese mills stand at $580-590/mt FOB for March shipment, remaining stable week on week, while offer prices from smaller mills have been heard at $565-575/mt FOB, versus $560-575/mt FOB last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $565-590/mt FOB, versus $560-590/mt FOB last week.
During the given period, HDG prices in the Chinese domestic market have fluctuated within a limited range. Some sellers have started to cut their offer prices gradually since the Chinese New Year holiday (February 14-23) is approaching. Market players have been unwilling to keep high inventories, aiming to avoid potential risks. Since a wave of extremely cold weather has hit China, the demand for HDG is expected to slacken further, which will weaken the support for prices. Moreover, HDG resources booked previously will likely arrive in the spot market next week, which will increase inventories and negatively affect prices. It is thought that HDG prices in the Chinese domestic market will likely soften in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 10/mt ($1.4/mt) compared to January 15, standing at RMB 3,910/mt ($558/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 22, HRC futures at Shanghai Futures Exchange are standing at RMB 3,287/mt ($470/mt), decreasing by RMB 20/mt ($2.9/mt) or 0.6 percent since January 15, while rising by 0.24 percent compared to the previous trading day, January 21.
$1 = RMB 7.0014