Ex-China hot dip galvanized (HDG) offer prices have moved up further in the past week amid the increasing trend in HRC futures prices and positive fundamentals overall in the domestic market in China. Offers are at $850-880/mt FOB for May shipment this week, moving up by $30/mt on average over the past week.
The reference deal prices have been heard at $850/mt FOB amid good demand in the local market, though activity in the export market has been slow. “Chinese steelmakers raised their ex-China HDG offer prices significantly amid the good demand in the local market; for instance, some steel mills have suspended giving offer prices this week,” an international trader said.
During the given week, domestic HDG prices have seen slight rises amid the increasing trend in HRC futures prices and better demand from downstream users as more projects resumed construction. Inventory of HDG has increased slightly due to higher production on the steelmakers’ side. It is thought that HDG prices in the Chinese domestic market will edge up in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 36/mt ($5.6/mt) week on week to RMB 6,196/mt ($958/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 4, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,016/mt ($775/mt), increasing by RMB 108/mt ($17/mt) or 2.2 percent since February 25.
$1 = RMB 6.4758
