Ex-China hot dip galvanized (HDG) offer prices have edged down slightly over the past week. Offers are at $1,005-1,015/mt FOB for late May shipment this week, moving down by $10/mt compared to April 7 on average. Nevertheless, the tradable level is at $1,000-1,005/mt FOB, up by $5-10/mt from last week. This increase is due to the fact that ex-China HDG offers are still among the most competitive in Asia and beyond, and some deals have been reported at abovementioned levels.
At the same time, the situation in the local market in China is still complex. “The control measures due to the Covid-19 pandemic have continued in Shanghai and other regions of China, exerting a negative impact on the HDG market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved sideways amid transportation restrictions. Most downstream users have purchased HDG from local traders. The rising iron ore prices have bolstered HDG prices to some extent. It is thought 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 moved sideways compared to April 7, standing at RMB 5,983/mt ($942/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 14, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,160/mt (812/mt), dropping by RMB 68/mt ($7.1/mt) or 1.3 percent since April 7.
$1 = RMB 6.354
