Ex-China HDG offers have remained stable or have shown only a slight downward bias in some offers during the past week amid slight changes in HRC futures prices.
Specifically, offers from large Chinese mills have been heard at around $595-625/mt FOB for October shipment, compared to $600-625/mt FOB last week, while offer prices from smaller mills have been heard at $595-605/mt FOB, moving sideways on average week on week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $595-625/mt, the same as last week.
During the given week, HDG prices in the Chinese domestic market have edged up slightly amid the small rises in HRC futures prices. Amid the approach of the National Day holiday (October 1-8), market players consider that stock replenishment has not been as good as they had expected, which has weakened the support for HDG prices. Inventories of HDG have increased, exerting a negative impact on prices. It is thought 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 increased by RMB 10/mt ($1.4/mt) compared to September 18, standing at RMB 3,883/mt ($547/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 26, HRC futures at Shanghai Futures Exchange are standing at RMB 3,313/mt ($467/mt), decreasing by RMB 61/mt ($8.5/mt) since September 18, while down 1.22 percent compared to the previous trading day, September 25.
$1 = RMB 7.1118
