Ex-China hot dip galvanized (HDG) offer prices have moved down over the past week. Offers from large mills are at $920-940/mt FOB for late June shipment this week, down by $55/mt on average compared to May 5.
Reference deal prices of ex-China HDG have been heard at $920-930/mt FOB and even some levels $10-20/mt lower are possible from smaller sellers.
“HRC futures prices have moved down sharply over the past week, exerting a negative impact on the HDG market, while bearish sentiments have prevailed among market players,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved down amid decreasing HRC futures prices. Meanwhile, Chinese steelmaker Baosteel has issued its prices for delivery in June this year, keeping its hot dip galvanized (HDG) prices stable, which may bolster the market in the near future. It is expected that HDG prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved down by RMB 90/mt ($13.4/mt) compared to May 5, standing at RMB 6,080/mt ($903.4/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 12, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,730/mt (703/mt), decreasing by RMB 285/mt ($42.3/mt) or 5.7 percent since May 5.
$1 = RMB 6.7292
