Ex-China HDG offers have remained stable over the past week, but weaker fundamentals in the local market may push prices slightly down next week.
Specifically, offers from large Chinese mills stand at $635-640/mt FOB for July shipment, remaining stable compared to May 21, 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 seen slight declines amid the decreasing HRC futures prices. Due to the prevailing cautious sentiments among market players, transaction activities in the HDG market have been quieter, exerting a negative impact on its prices. Inventories of HDG have been at relatively high levels, therefore sellers chose to sell at lower prices, aiming to ease the pressure. HRC prices moved down at a faster pace, easing the pressure from the raw material side. It is thought that HDG prices in the Chinese domestic market will soften 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 21, standing at RMB 4,067/mt ($596/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 28, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,365/mt ($493/mt), decreasing by RMB 29/mt ($4.2/mt) or 0.85 percent since May 21, while increasing by 0.12 percent compared to the previous trading day, May 27.
$1 = RMB 6.824
