Ex-China HDG offers have moved sideways over the past week though sentiments have worsened due to declines in the domestic market coupled with the continuous fall in HRC futures prices in China.
Specifically, offers from large Chinese mills stand at $635-640/mt FOB for July shipment, moving sideways compared to May 14, 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, moving sideways week on week.
During the given week, HDG prices in the Chinese domestic market have edged down amid decreasing HRC futures prices. Widespread rainy weather has negatively affected the demand for HDG from downstream users. Cautious sentiments have prevailed among market players as the traditional offseason for business is coming. Meanwhile, the stock market has indicated significant decreases on May 21, which may exert a negative impact on sentiments in the steel market. It is expected that HDG prices in the Chinese domestic market will edge down further in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 37/mt ($5.3/mt) compared to May 14, standing at RMB 4,077/mt ($596/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 21, HRC futures at Shanghai Futures Exchange are standing at RMB 3,394/mt ($496/mt), decreasing by RMB 84/mt ($12.3/mt) or 2.4 percent since May 14, while down 0.59 percent compared to the previous trading day, May 20.
$1 = RMB 6.8349
