Ex-China hot dip galvanized (HDG) offer prices have indicated rises, but most buyers have been reluctant to accept the increases. The sentiment in the local market of HDG has been cautiously optimistic.
Offers from major Chinese mills this week are at $830/mt FOB for late May shipment, moving up by $30/mt compared to February 23 on average. However, the reference deal prices for ex-China HDG have remained at $790/mt FOB, with some deals reported at this level, but not higher.
“Following the previous increases, market players have become quite cautious in concluding purchases of HDG, while the expected better demand will provide support for prices,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved on an overall uptrend, while market players have started to be cautious towards the future prospects for the HDG market following the increases in the previous period. Since the traditional peak season is approaching, traders are mostly optimistic, though they have been waiting for a further release of demand. At the same time, raw material prices have been at relatively high levels, which has bolstered HDG prices to some extent. It is expected that HDG prices in the Chinese domestic market will edge up slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 43/mt ($6.25/mt) compared to February 23, standing at RMB 4,933/mt ($717/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 2, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,320/mt (628/mt), increasing by RMB 35/mt ($5.1/mt) or 0.08 percent since February 23.
$1 = RMB 6.8808
