Although local prices for hot dip galvanized (HDG) coils in China have seen slight declines this week, ex-China HDG offers have moved sideways during the week.
Specifically, offers from large Chinese mills have been heard at around $595-620/mt FOB for October shipment, compared to $595-620/mt FOB last week, while offer prices from smaller mills have been heard at $585-595/mt FOB, remaining stable week on week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $585-620/mt, versus $585-620/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have edged down amid decreasing HRC futures prices. Demand for HDG from downstream users has not been as good as expected, exerting a negative impact on prices. However, inventory of HDG has been at relatively low levels, bolstering prices to a certain degree. Since September is the traditional peak season for business, market players think demand may gradually improve in the near future. It is expected that HDG prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 30/mt ($4.2/mt) compared to August 28, standing at RMB 3,853/mt ($543/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 4, HRC futures at Shanghai Futures Exchange are standing at RMB 3,313/mt ($467/mt), decreasing by RMB 72/mt ($10/mt) or 2.1 percent since August 28, while up 0.24 percent compared to the previous trading day, September 3.
$1 = RMB 7.1052