Ex-China hot dip galvanized (HDG) offer prices have moved sideways over the past week. Offers are at $1,015-1,025/mt FOB for late May shipment this week, but the tradable level has improved by around $5/mt on average to $990-1,000/mt FOB.
“The lockdown in Shanghai due to the Covid-19 pandemic has negatively affected demand for HDG, while market players still expect a better performance in the near future as it is the traditional peak season for the steel industry and China has taken measures to control the rapidly spreading pandemic,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have fluctuated within a limited range. HRC futures prices at Shanghai Futures Exchange (SHFE) have edged down, weakening the support for HDG prices. However, the declining inventory levels have bolstered the HDG market. It is thought that HDG prices in the Chinese domestic market will rise slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have remained stable compared to March 31 at RMB 5,983/mt ($942/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 7, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,228/mt (821/mt), rising by RMB 10/mt ($7.1/mt) or 0.19 percent since March 31, but down by RMB 52/mt from the previous day.
$1 = RMB 6.3659
