Ex-China HDG offers have edged up during the past week amid the slight rises seen in local HDG prices and higher HRC futures prices.
Specifically, offers from large Chinese mills have been heard at around $600-625/mt FOB for October shipment, compared to $595-620/mt FOB last week, while offer prices from smaller mills have been heard at $595-605/mt FOB, rising by $10/mt on average week on week. As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $585-625/mt, versus $585-620/mt FOB last week.
At the same time, according to sources, offers for ex-China Z275 HDG have been voiced in the Middle East at $730-740/mt CFR UAE, though no deals have been reported so far.
During the given week, HDG prices in the Chinese domestic market have seen slight rises amid increasing HRC futures prices. Although it is in the traditional peak season in September, the rebound in demand for HDG has remained limited. Since the National Day holiday (October 1-8) is approaching, stock replenishments will bolster HDG prices. At the same time, production cuts by miners have pushed up coking coal and coke prices, which have provided support for HDG prices from the cost side. It is thought that HDG prices in the Chinese domestic market will likely edge up in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have increased by RMB 20/mt ($2.8/mt) week on week, standing at RMB 3,873/mt ($545.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 19, HRC futures at Shanghai Futures Exchange are standing at RMB 3,374/mt ($474/mt), increasing by RMB 10/mt ($1.4/mt) since September 12, while increasing by 0.18 percent compared to the previous trading day, September 18.
$1 = RMB 7.1085
