Ex-China hot dip galvanized (HDG) offer prices have edged up slightly over the past week. Offers from mills are at $1,030-1,040/mt FOB for late May shipment this week, edging up by $10/mt compared to March 3 on average.
But the tradable level for some tonnages to Southeast Asia has been at $970-980/mt FOB, with the highest possible at $990/mt FOB.
“Following sharp rises in HRC futures prices, they have moved down significantly over the past three trading days, while the turbulent global situation also affected the HDG market,” an international trader said.
HDG prices in the Chinese domestic market have been almost stable over the past week amid the big rises in ferrous metal futures prices in the first part of the given week and the declining trend over the past few trading days. Bearish sentiment has started to prevail among market players, weakening the support for the HDG market. It is thought that HDG prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved sideways compared to March 3, standing at RMB 5,867/mt ($928/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 10, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,107/mt (808/mt), decreasing by RMB 142/mt ($22.5/mt) or 2.7 percent since March 3.
$1 = RMB 6.3178
