Ex-China hot dip galvanized (HDG) prices have edged down in the given week following declines in hot rolled coil (HRC) and cold rolled coil (CRC) prices, affected by the drops in HRC futures prices in China.
Specifically, offers from large mills are heard at around $590-595/mt FOB for June shipment, moving down by $5/mt since April 3, though offer prices from smaller mills are heard at $580-585/mt FOB, down $5/mt compared to the previous week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $580-595/mt, versus $585-600/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have edged down slightly amid decreasing HRC futures prices. The 125 percent tariffs imposed by the US on all imports from China and China’s countermeasures have exerted a negative impact on the steel market. On April 10, major Chinese steelmaker Baosteel announced stable HDG prices for delivery in May, which may affect market sentiments. Due to the negative impact of the tariff issue, China will speed up the implementation of stimulus policies, which will likely provide support for the steel industry. 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 decreased by RMB 7/mt ($1/mt) compared to April 3, standing at RMB 4,050/mt ($562.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 10, HRC futures at Shanghai Futures Exchange are standing at RMB 3,255/mt ($452/mt), decreasing by RMB 105/mt ($14.6/mt) or 3.125 percent since April 3, while up 2.01 percent compared to the previous trading day, April 9.
$1 = RMB 7.2092
