Ex-China HDG offers have moved up further over the past week amid quite good demand from the Middle East and Southeast Asia.
Specifically, offers from large Chinese mills stand at $635-640/mt FOB for July shipment, moving up by $10/mt compared to May 7, while offer prices from smaller mills have been heard at $630-635/mt FOB, versus 620-625/mt FOB last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $630-640/mt FOB, versus $620-630/mt FOB recorded on May 7.
During the given week, HDG prices in the Chinese domestic market have declined slightly amid decreasing HRC futures prices. Currently, relatively high raw material prices still provide support for HDG prices from the cost side. On May 14, the financial markets in China saw a downward correction, exerting a negative impact on market sentiments. Lately, some market players have started to be more cautious as regards the future prospects for the HDG market, which will negatively affect prices in the near future. It is thought that HDG prices in the Chinese domestic market will likely come under downward pressure in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 10/mt ($1.5/mt) compared to May 7, standing at RMB 4,113/mt ($601/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 14, HRC futures at Shanghai Futures Exchange are standing at RMB 3,478/mt ($499/mt), decreasing by RMB 14/mt ($2.05/mt) or 0.4 percent since May 7, while increasing by 0.26 percent compared to the previous trading day, May 13.
$1 = RMB 6.8401
