Ex-China hot dip galvanized (HDG) offer prices have edged up further in the past week amid the rising trend in the local market and surging iron ore prices together with sharp rises in CRC prices. Offers from mills are at $610-620/mt FOB this week, up by $12.5/mt on average compared to one week ago. At the same time, deal price level has been assessed at $600-610/mt FOB, mostly to Southeast Asia and South America, moving up by $12.5/mt on average week on week.
“Surging iron ore prices pushed up steelmakers’ ex-works prices for HDG and exerted a positive impact on market players’ sentiments, and decent demand in the local market also positively affected the ex-China HDG offer prices,” a trader told SteelOrbis.
During the given week, HDG prices in the Chinese domestic market has moved on an overall uptrend amid the tight supply in the spot market and steelmakers’ raising their ex-works prices. Meanwhile, inventory of HDG has been at relatively low level, thereby market players have been willing to bolster their offer prices. Since iron ore prices and other flat steel products prices have increased very fast this week, it is thought that HDG prices in the Chinese domestic market will remain strong in the coming week. The China’s CRC reference prices reached $555-565/mt FOB, up by $30/mt week on week.
Average 1.0 mm hot dip galvanized spot prices in China have moved up by RMB 80/mt ($11.5/mt) week on week to RMB 4,803/mt ($693/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 20, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,967/mt ($572/mt), increasing by RMB 51/mt ($7.4/mt) or 1.3 percent since August 13.
$1 = RMB 6.9274
