Ex-China hot dip galvanized (HDG) offer prices have remained stable amid only a slightly rising trend in local HDG prices and no improvement in demand, while sentiment has been cautious as, despite government support there are no expectations for better demand in the near future.
Offers from Chinese mills this week are at $690/mt FOB for late January shipment, remaining stable compared to November 24. Reference deal prices for ex-China HDG have been heard at $655-670/mt FOB, with the lower end of the range down by $10/mt.
“The supply shortage has bolstered the local HDG market, while the demand from downstream users has been slack due to the wave of cold weather hitting China,” an international trader said.
During the given week, HDG supplies have indicated shortages, providing support for prices. Traders have been unwilling to sell at lower prices, which provided support for HDG prices. Though the Covid-19 pandemic has spread in many regions of China, positive signs have been observed, for instance, the easing of restrictions, which will likely exert a positive impact on market players’ sentiments. It is thought that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 26/mt ($3.7/mt) compared to November 24 to RMB 4,786/mt ($672/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 1, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,873/mt (544/mt), rising by RMB 88/mt ($12.4/mt) or 2.32 percent since November 24.
$1 = RMB 7.1225
