Although local prices for hot dip galvanized (HDG) coils in China have shown a slight recovery this week, ex-China HDG offers have moved down during the week amid slack demand and continuous declines in other flat steel prices, including hot rolled coil (HRC) and cold rolled coil (CRC).
Specifically, offers from large Chinese mills have been heard at around $595-620/mt FOB for October shipment, compared to $600-620/mt FOB last week, while offer prices from smaller mills have been heard at $585-595/mt FOB, down by $10-20/mt week on week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $585-620/mt, versus $595-620/mt FOB last week.
At the same time, workable prices for Z120 HDG through Chinese traders have been estimated at around $580/mt FOB this week. Besides, several deals for Z140 HDG have been signed in the Middle East at $585/mt FOB, according to sources.
During the given week, HDG prices in the Chinese domestic market have seen small rises amid the slight increases in HRC futures prices. Market players’ sentiments have improved, exerting a positive impact on HDG prices. However, demand for HDG has not seen any significant improvement, resulting in traders mostly choosing to reduce inventories. On August 28, five government departments in China issued the Steel Industry Growth Stabilization Work Plan for 2025-2026, stating that China will implement precise regulation of production capacity and output, and this has bolstered market sentiments firmly. It is thought that HDG prices in the Chinese domestic market will move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have increased by RMB 17/mt ($2.4/mt) compared to August 21, standing at RMB 3,883/mt ($547/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 28, HRC futures at Shanghai Futures Exchange are standing at RMB 3,385/mt ($477/mt), increasing by RMB 10/mt ($1.4/mt) or 0.3 percent since August 21, while up 0.83 percent compared to the previous trading day, August 27.
$1 = RMB 7.1108