Ex-China hot dip galvanized (HDG) offer prices have fluctuated within a limited range over the past week. Offers from mills are at $995-1,025/mt FOB for late August shipment this week, moving sideways on average.
“Ex-China HDG prices have indicated a fluctuating trend as buyers have mostly held a wait-and-see stance due to the possible cancellation of the export tax rebate, while transaction activities for ex-China HDG may continue their weak trend and prices may not see big changes,” an international trader said.
The tradable price level for ex-China HDG has declined by $10/mt over the past week to $950-960/mt FOB due to low demand.
During the given week, domestic HDG prices in China have declined slightly amid the weak trend of HRC futures prices and the prevailing cautious sentiments among market players. Demand for HDG has been slack as the rainy season has begun in eastern China. It is thought that HDG prices will likely fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have declined by RMB 86/mt ($13.4/mt) week on week to RMB 6,690/mt ($1,046/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 10, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,448/mt (852/mt), decreasing by RMB 42/mt ($6.6/mt) or 0.76 percent since June 3.
$1 = RMB 6.3972
