Ex-China hot dip galvanized (HDG) offer prices have edged down over the past week. Offers from large mills are at $910-930/mt FOB for late July shipment this week, down by $10/mt compared to May 19 on average. Reference deal prices of ex-China HDG have been heard at $900/mt FOB, but some smaller mills have been able to offer discounts of $10-20/mt to attract buyers.
“The declining HRC futures prices have exerted a negative impact on market sentiment, while the decreasing inventories and tight supplies have bolstered HDG prices in the Chinese domestic market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have risen slightly amid the decreasing inventory levels and tight supplies. Meanwhile, transaction activities have improved to some extent amid the support from production costs. It is thought that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have edged up by RMB 16/mt ($2.4/mt) compared to May 19, standing at RMB 6,096/mt ($901/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 26, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,632/mt (694/mt), decreasing by RMB 83/mt ($12.4/mt) or 1.76 percent since May 19.
$1 = RMB 6.6766
