Ex-China hot dip galvanized (HDG) offer prices have moved sideways over the past week, but the tradable level has moved down amid poor sentiments and local losses. Offers from large mills are at $820-830/mt FOB for late September shipment this week, remaining stable on average compared to June 30.
Reference deal prices of ex-China HDG have been heard at $800/mt FOB, versus $800-820/mt FOB last week. Some small deals have been reported at this level during the week. While some small mills have been ready to sell at even slightly lower levels, as reported on Thursday, July 7.
“Ex-China HDG offer prices have been stable over the past week, though bearish sentiments have prevailed among market players in the current offseason,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved down amid decreasing HRC futures prices and the prevailing cautious sentiments among market players. Demand from downstream users has been slack, exerting a negative impact on the HDG market. It is thought that HDG prices in the Chinese domestic market may continue to edge down in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 153/mt ($23/mt) compared to June 30, standing at RMB 5,493/mt ($819/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 7, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,202/mt (626/mt), decreasing by RMB 210/mt ($31.3/mt) or 4.8 percent since June 30.
$1 = RMB 6.7143
