Ex-China hot dip galvanized (HDG) offer prices have indicated a rising trend over the past week, mainly due to better expectations and overall sentiments in the market rather than to a real improvement in demand. Offers from large mills are at $750-760/mt FOB for late October shipment this week, increasing by $10/mt compared to July 28 on average. Reference deal prices of ex-China HDG have been heard at $740/mt FOB, up $10/mt compared to last week.
“The previous rebounding trends in HRC futures prices and local steel prices bolstered ex-China HDG offer prices, while cautious sentiments have started to be observed in the market again,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have risen slightly for thick specifications, though they have declined for thin specifications as demand has remained slack. Currently, the hot weather hit China has been exerting a negative impact on construction activities. Following the previous rebounding trend, HRC futures prices moved on a downward trend over the past two trading days due to the uncertainties caused by the visit of US House Speaker Nancy Pelosi to Taiwan. It is expected that HDG prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 7/mt ($1.04/mt) compared to July 28, standing at RMB 4,793/mt ($709/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 4, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,957/mt (585/mt), decreasing by RMB 62/mt ($9.2/mt) or 1.5 percent since July 28.
$1 = RMB 6.7636