Ex-China hot dip galvanized (HDG) offer prices have edged down amid still limited demand and the depreciation of the local currency, while in contrast local HDG prices have indicated slight rises.
Offers from mills this week are at $730/mt FOB for late November shipment, down by $10/mt compared to September 22 on average. Reference deal prices for ex-China HDG have been heard at $685-700/mt FOB, down from last week’s $695-705/mt FOB. For Z80 coils, prices have been as low as $665-675/mt FOB.
“Downstream users’ replenishment of stocks ahead of the long holiday provided support for HDG prices in the local market, while demand in the export market has been weak,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved up amid increasing HRC futures prices. Downstream users have concluded some purchases for HDG ahead of the long National Day holiday (October 1-7), which has bolstered prices. However, the repeated outbreaks of the Covid-19 pandemic in some regions have exerted a negative impact on the HDG market. It is expected that HDG prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have increased by RMB 43/mt compared to September 22 to RMB 4,703/mt ($661.5/mt) ex-warehouse, according to SteelOrbis’ information. At the same time, the dollar equivalent is $6.5/mt below last week due to the depreciation of the Chinese currency.
As of September 29, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,878/mt (545/mt), rising by RMB 69/mt or 1.81 percent since September 22.
$1 = RMB 7.1102
