Ex-China hot dip galvanized (HDG) offer prices have moved sideways since last week due to the holidays earlier this week. Offers from mills are at $980-990/mt FOB for late June shipment this week, remaining stable on average compared to April 28. Prices have stabilized after two weeks of sharp falls.
The tradable level is still $970/mt FOB at the highest, but it may improve in the coming days if the local market shows gains.
“Following the five-day Labor Day holiday, steelmakers have not updated their prices yet, while market players hold an optimistic attitude towards the prospects for the future market as the lockdown in Shanghai may start to be lifted from mid-May,” an international trader said.
During the given week, market players have mostly held a wait-and-see stance due to the five-day holiday, resulting in the stable trend of HDG prices. At the same time, inventory of HDG has declined, providing support for prices. It is expected that HDG prices in the Chinese domestic market may edge up in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have remained stable compared to April 28, standing at RMB 6,170/mt ($939/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 5, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,015/mt (764/mt), rising by RMB 65/mt ($9.9/mt) or 1.3 percent since April 28.
$1 = RMB 6.5672
