Ex-China HDG offers have remained stable over the past week amid weak demand overseas while sentiment in the local market has improved slightly given higher futures HRC prices.
Specifically, offers from large Chinese mills stand at $620-625/mt FOB for June shipment, moving sideways compared to April 23, while offer prices from smaller mills have been heard at $615-620/mt FOB, the same as last week
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $615-625/mt FOB.
During the given week, HRC futures prices have continued the uptrend, exerting a positive impact on HDG market. Since the Labor Day holiday (May 1-5) is closely approaching, traders mostly chose to sell, aiming to ease the pressure of high inventories after the holiday. Recently, HRC prices have moved on an upward trend, bolstering HDG prices to a certain degree, while the increase in HDG prices lagged behind that of HRC. It is thought that HDG prices in the Chinese domestic market might edge up further in the coming period.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 10/mt ($1.5/mt) compared to April 23, standing at RMB 4,080/mt ($595/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 30, HRC futures at Shanghai Futures Exchange are standing at RMB 3,425/mt ($499/mt), increasing by RMB 40/mt ($5.8/mt) or 1.2 percent since April 23, while increasing by 1.03 percent compared to the previous trading day, April 29.
$1 = RMB 6.8628
