Ex-China hot dip galvanized (HDG) prices from most mills have moved on an uptrend this week amid rising HRC futures prices and the uptrend of local HDG prices.
Specifically, offers from large mills have been heard at around $720/mt FOB for January shipment, increasing by $15/mt compared to November 9. Meanwhile, the reference deal prices for ex-China HDG have been heard at $685-710/mt FOB, against $665-695/mt FOB last week.
During the given week, major Chinese steelmaker Baosteel raised its local base prices for HDG for delivery in December by RMB 100/mt ($14/mt), exerting a positive impact on market sentiments. Besides, HDG prices in the Chinese domestic market have seen rises amid the increasing HRC futures prices. Particularly, average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 33/mt ($4.6/mt) compared to November 9, standing at RMB 4,740/mt ($660/mt) ex-warehouse, according to SteelOrbis’ information.
At the same time, import iron ore prices have seen continuous rises, which have bolstered HDG prices from the cost side. However, orders from downstream users have not seen significant improvements, and the weather is getting colder and colder, which may negatively affect HDG prices in the near future. It is thought that HDG prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
As of November 16, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,048/mt (564/mt), moving up by RMB 95/mt ($13.2/mt) or 2.4 percent compared to November 9.
$1 = RMB 7.1724
