Ex-China hot dip galvanized (HDG) offer prices have edged down slightly in the past week, following a sharply declining trend in the previous week. Offers are at $780-810/mt FOB for late March shipment this week, moving down by $10/mt on average compared to one week ago amid the sluggish demand in the local market.
“The Chinese New Year holiday is closely approaching, reducing demand for HDG, which will result in a fluctuating trend within a limited range in ex-China HDG prices,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have decreased slightly amid the slack demand from downstream users due to the approach of the Chinese New Year holiday (February 11-17). At the same time, there have been fewer HDG supplies arriving in the market, while inventory levels have increased. 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 lost RMB 23/mt ($3.5/mt) week on week at RMB 6,010/mt ($927.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 28, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 4,423/mt ($683/mt), decreasing by RMB 7/mt ($1.1/mt) or 0.16 percent since January 21.
$1 = RMB 6.4845
