Ex-China HDG offer prices moved down by $12.5/mt on average in the past week to the current levels of $580-590/mt FOB, while deals have been heard at $580-585/mt FOB to Southeast Asia and South Africa.
During the given week, inventories of HDG in the local Chinese market have only risen slightly compared to the pre-holiday levels as transport restrictions have exerted a negative impact on the circulation of HDG supplies. Demand has remained sluggish as most downstream users have not resumed production yet due to the coronavirus. If the transportation situation becomes normal next week or later in February, inventory levels in the HDG market will rise further. It is thought that HDG prices in the Chinese domestic market will edge down in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have declined by RMB 36/mt ($5.2/mt) week on week to RMB 4,634/mt ($664.0/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 13, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,396/mt ($486.6/mt), increasing by RMB 89/mt ($12.8/mt) or 2.7 percent since February 6.
$1 = RMB 6.979
