Ex-China hot dip galvanized (HDG) prices have increased slightly over the past week amid better sentiments in the local market and higher HRC futures prices in China.
Specifically, offers from large mills have been heard at around $600-620/mt FOB for September shipment, compared to $585-610/mt FOB as of July 31, while offer prices from smaller mills have been heard at $590-605/mt FOB, moving up by $10-15/mt over the past week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $590-620/mt, versus $575-610/mt FOB last week.
According to sources, trade activity has remained slow, with offers for ex-China Z275 HRC voiced at $660/mt CFR UAE this week.
At the same time, this week HRC futures prices moved down first while moving up later, affecting the HDG market as market traders have experienced rollercoaster-like market conditions and have been reluctant to conclude purchases. Meanwhile, the price increases for raw materials, including iron ore, coking coal and coke, have pushed up HDG prices from the cost side. Steelmakers have also been ready to raise their HDG prices. However, the demand for HDG has remained slack, which may negatively affect prices. It is thought that HDG prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have increased by RMB 33/mt ($4.6/mt) compared to July 31, standing at RMB 3,913/mt ($548.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 7, HRC futures at Shanghai Futures Exchange are standing at RMB 3,440/mt ($482/mt), increasing by RMB 50/mt ($7/mt) or 1.5 percent since July 31, while down 0.35 percent compared to the previous trading day, August 6.
$1 = RMB 7.1345
