Ex-China hot dip galvanized (HDG) offer prices have moved sideways amid the decreasing trend in local HDG prices.
Offers from mills this week are at $690/mt FOB for late January shipment, moving sideways compared to November 17 on average. Reference deal prices for ex-China HDG have been heard at $665-670/mt FOB, up $5-10/mt from a week ago, but market sources believe that prices will peak at this level.
“The worsening pandemic in many regions of China has negatively affected the HDG market, while the decreasing HRC futures prices have also weakened the support for HDG prices, though tight supply has bolstered the market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have edged down amid the decreasing trend of HRC futures prices and the prevailing cautious sentiments among market players. Though the Covid-19 restrictions have been eased, many regions are currently suffering from the spread of the pandemic, which is exerting a negative impact on the HDG market. However, the supply of HDG has been tight, which will bolster prices in the near future. It is expected that HDG prices in the Chinese domestic market will likely continue their fluctuating trend in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 93/mt ($13.1/mt) compared to November 17 to RMB 4,760/mt ($668.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 24, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,785/mt (531.6/mt), decreasing by RMB 16/mt ($2.2/mt) or 0.42 percent since November 17.
$1 = RMB 7.1201
