Ex-China HDG offers have remained stable over the past week amid slightly increasing local HDG prices, though sentiments in the HRC futures market have been worsening this week .
Specifically, offers from large Chinese mills stand at $580-590/mt FOB for March shipment, moving sideways week on week, while offer prices from smaller mills have been heard at $565-575/mt FOB, versus $565-575/mt FOB last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $565-590/mt FOB, versus $565-590/mt FOB last week.
During the given period, HDG prices in the Chinese domestic market have fluctuated within a limited range, with both upward and downward price changes being observed. HRC futures prices have moved down, weakening the support for market sentiments. Transaction activity for HDG has been quiet, resulting in increasing inventories. Some market players have chosen to sell at lower prices, aiming to reduce inventories and bring in cash ahead of the long Chinese New Year holiday (February 14-23). It is thought that HDG prices in the Chinese domestic market will likely remain stable in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 17/mt ($2.4/mt) compared to January 29, standing at RMB 3,937/mt ($566/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 5, HRC futures at Shanghai Futures Exchange are standing at RMB 3,263/mt ($469/mt), decreasing by RMB 45/mt ($6.5/mt) or 1.4 percent since January 29, while declining by 0.40 percent compared to the previous trading day, February 4.
$1 = RMB 6.957
