Ex-China HDG offers have moved sideways over the past week, but negative sentiments have started to prevail in the market.
Specifically, offers from large Chinese mills stand at $635-640/mt FOB for July and early August shipment, moving sideways compared to May 28, while offer prices from smaller mills have been heard at $630-635/mt FOB. As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $630-640/mt FOB.
During the given week, HDG prices in the Chinese domestic market have edged down slightly. HRC futures prices have seen slight rises over the past week, exerting a positive impact on HDG prices, while construction activities have been negatively affected by the widespread rainy weather in southern China, which has weakened HDG prices. Since the traditional off-season is approaching, cautious sentiments prevail among market players. It is expected that HDG prices in the Chinese domestic market will come under downward pressure in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 10/mt ($1.5/mt) compared to May 28, standing at RMB 4,057/mt ($595/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 4, HRC futures at Shanghai Futures Exchange are standing at RMB 3,377/mt ($495/mt), increasing by RMB 12/mt ($1.8/mt) or 0.4 percent since May 28, while decreasing by 0.44 percent compared to the previous trading day, June 3.
$1 = RMB 6.8203
