Ex-China hot dip galvanized (HDG) offer prices have moved sideways over the past week, though no real deals have been concluded following the cancellation of the export tax rebate as of August 1. Offers are at $1,150-1,180/mt FOB for late October shipment this week.
“Market players have still held a wait-and-see stance towards concluding purchases of ex-China HDG following the upward adjustments in prices,” an international trader said.
During the given week, domestic HDG prices have declined slightly amid the declining trend in HRC futures prices and the prevailing bearish sentiments among market players. Demand for HDG has remained slack in the current traditional offseason, resulting in low-to-medium transaction activities. It is expected that HDG prices in the Chinese domestic market will likely edge down further in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 27/mt ($4.2/mt) week on week at RMB 6,813/mt ($1,051/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 19, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,389/mt (831/mt), decreasing by RMB 388/mt ($59.8/mt) or 6.7 percent since August 12.
$1 = RMB 6.4853
