Ex-China HDG offers have not changed much after Chinese suppliers returned from their long holiday, in line with only slight fluctuations seen in HRC futures prices.
Specifically, offers from large Chinese mills have been heard at around $595-625/mt FOB for October shipment, while offer prices from smaller mills have been heard at $595-605/mt FOB, remaining stable on average week on week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has remained at $595-625/mt FOB.
During the given week, HDG prices in the Chinese domestic market have moved sideways amid the impact of the week-long National Day holiday. HDG producers’ capacity utilization rates are still at relatively high levels, exerting a negative impact on prices. Inventories of HDG have increased, also weakening the support for prices. It is expected that HDG prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week, though they could rebound later amid expected stock replenishments by downstream users.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have remained stable compared to September 25, standing at RMB 3,883/mt ($547/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 9, HRC futures at Shanghai Futures Exchange are standing at RMB 3,286/mt ($463/mt), decreasing by RMB 72/mt ($10/mt) or 2.1 percent since September 25, while up 0.37 percent compared to the previous trading day, October 8.
$1 = RMB 7.1102