Ex-China hot dip galvanized (HDG) prices have moved down this week following further declines in local HDG prices and HRC futures prices.
Specifically, offers from large mills are still heard at around $715-720/mt FOB for April shipment, decreasing by $10/mt compared to February 29. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $665-675/mt FOB, moving down by $10/mt week on week.
During the given week, cautious sentiments have prevailed among market players, while demand for HDG from downstream users has improved slowly, which negatively affected prices. HRC prices in the Chinese domestic market have edged down, also weakening the support for HDG prices. Inventory levels of HDG increased in the given week, exerting a negative impact on prices. Market players have had to reduce booking orders from producers amid pressures from rising inventory and tight liquidity. It is expected that HDG prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 30/mt ($4.2/mt) compared to February 29, standing at RMB 4,707/mt ($663/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 7, HRC futures at Shanghai Futures Exchange are standing at RMB 3,853/mt ($543/mt), decreasing by RMB 58/mt ($10.7/mt) or 1.5 percent since February 29, while up 0.23 percent compared to the previous trading day, March 6.
$1 = RMB 7.1002
