Ex-China HDG offers have decreased over the past week amid falling HRC futures prices, while local HDG prices have also declined.
Specifically, while offers from large Chinese mills have remained stable at around $570-580/mt FOB for February shipment, down $5-10/mt week on week, offer prices from smaller mills have been heard at $540-565/mt FOB, down by $10/mt on average week on week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $540-580/mt FOB, versus $550-590/mt FOB last week.
During the given week, HRC futures prices have indicated decreases, exerting a negative impact on the HDG market. Inventories of HDG have been consumed slowly, weakening the support for prices. Meanwhile, cautious sentiments prevail among market players during the traditional cold winter offseason. Demand for HDG has slackened, especially in northern China as a wave of cold weather has hit China. However, major Chinese steelmaker Baosteel has decided to raise its local HDG base prices by RMB 100/mt ($14/mt) for delivery in January next year, which may bolster prices to a certain degree.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 17/mt ($2.4/mt) compared to December 4, standing at RMB 3,873/mt ($548/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 11, HRC futures at Shanghai Futures Exchange are standing at RMB 3,238/mt ($457/mt), decreasing by RMB 94/mt ($13/mt) or 2.8 percent since December 4, while down 1.19 percent compared to the previous trading day, December 10.
$1 = RMB 7.0686