Ex-China hot dip galvanized (HDG) offer prices have moved sideways over the past week. Offers from large mills have been at $910-930/mt FOB for late July shipment this week, remaining stable compared to May 26 on average. Reference deal prices of ex-China HDG have been heard at $890-900/mt, FOB, compared to $900/mt FOB one weak earlier. Weak buying in the global market has continued to put pressure on tradable price levels.
“The rebounding trend in HRC futures prices has bolstered the HDG market, and market players have mostly held a more optimistic attitude towards the prospects for the future market amid the lifting of the lockdown in Shanghai,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have remained stable amid rising HRC and CRC prices in the local market. Though Shanghai’s lifting of its lockdown has exerted a positive impact on market sentiments, there has been a certain gap between actual demand and market participants’ expectations. Meanwhile, the coming Dragon Boat Festival may weaken the demand for HDG. It is thought that HDG prices in the Chinese domestic market may edge up slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have remained stable compared to May 26, standing at RMB 6,096/mt ($908.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 2, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,879/mt (727/mt), increasing by RMB 247/mt ($36.8/mt) or 5.3 percent since May 26.
$1 = RMB 6.7095
