Ex-China hot dip galvanized (HDG) offer prices have moved down amid the decreasing trends seen in HRC futures prices and local HDG prices.
Offers from mills this week are at $750-760/mt FOB for late October shipment, edging down by $10/mt compared to August 11 on average. Reference deal prices for ex-China HDG have been heard at $740/mt, FOB, down $10/mt compared to last week. This level was rumored in a deal done late last week, but this week a number of sources said that bids have come down to as low as $720/mt FOB.
“The decreasing ferrous metal futures prices have negatively affected ex-China HDG offer prices, while the downtrend in HRC prices has also exerted a negative impact on the market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved down as transaction activities have slowed down significantly. At the same time, market players are cautious as regards the future market prospects. Widespread hot temperatures have negatively affected downstream users’ capacity utilization rates, which has weakened the support for the HDG market. It is thought 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 decreased by RMB 33/mt ($4.9/mt) compared to August 4 to RMB 4,860/mt ($726/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 18, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,916/mt (578/mt), decreasing by RMB 140/mt ($20.6/mt) or 3.5 percent since August 11.
$1 = RMB 6.7802