Ex-China HDG offers have continued go down over the past week, and may stabilize at the current levels due to the rather firm local market and the production cuts that have been initiated.
Specifically, offers from large Chinese mills stand at $590-595/mt FOB for August shipment, but some small Chinese mills and traders, have cut their prices to $585/mt FOB, versus $590/mt FOB last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $585-595/mt FOB, down by $5-10/mt over the past week.
During the given week, HDG prices in the Chinese domestic market have fluctuated within a limited range amid the ongoing off-season. Some HDG producers have implemented maintenance works, reducing outputs and bolstering prices to a certain degree from the supply side. However, a wave of extremely high temperatures has hit eastern China, curbing the demand for HDG and exerting a negative impact on prices. Inventories of HDG have seen slight rises, negatively affecting prices. Destocking is expected to be slow in the near future, and it is expected that negative sentiments will continue to prevail in the domestic market.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 6/mt ($0.9/mt) compared to July 9, standing at RMB 4,023/mt ($592.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 16, HRC futures at Shanghai Futures Exchange are standing at RMB 3,324/mt ($489.5/mt), increasing by RMB 26/mt ($3.8/mt) or 0.8 percent since July 9, while increasing by 0.15 percent compared to the previous trading day, July 15.
$1 = RMB 6.7909
