Ex-China HDG offers have moved up over the past week amid better sentiments in the local market and the stronger yuan.
Specifically, offers from large Chinese mills stand at $600-610/mt FOB for May shipment, up $20/mt compared to February 26, while offer prices from smaller mills have been heard at $585-595/mt FOB, versus $565-575/mt FOB last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $585-610/mt FOB, versus $565-590/mt FOB recorded on February 26.
During the given period, HDG prices in the Chinese domestic market have indicated slight rises as downstream users have gradually resumed activities. Inventories of HDG have seen increases, while market players think procurement from downstream users in the near future will consume the inventories, and so their sentiments have been quite positive. The recent rainy weather has exerted a negative impact on the HDG market. Market players’ sentiments regarding the financial markets have been dampened due to the war in the Middle East, which may negatively affect the steel market. However, China has announced a GDP growth target of 4.5-5.0 percent for 2026, while striving for better in practice, which might bolster sentiments to a certain degree. It is thought that HDG prices in the Chinese domestic market will rebound slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 6/mt ($0.9/mt) compared to February 26, standing at RMB 3,953/mt ($573/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 6, HRC futures at Shanghai Futures Exchange are standing at RMB 3,230/mt ($468/mt), decreasing by RMB 15/mt ($2.2/mt) since February 27, while increasing by 0.31 percent compared to the previous trading day, March 5.
$1 = RMB 6.9007