Ex-China hot dip galvanized (HDG) offer prices have edged down in the past week, following an uptrend in the previous week. Offers are at $625-645/mt FOB for late November delivery this week, down by $5/mt on average compared to one week ago amid the decreasing trend in the local market and prevailing bearish sentiments among market players.
Deal prices have been heard at $620/mt FOB to Africa, moving down by $10/mt on average compared to the previous week. Since the decline of domestic HDG prices has been relatively slow, while the appreciation of Chinese currency has not been good for exports, market players may focus on the local market.
“The downtrend in China’s HRC prices may exert a negative impact on the HDG export market with demand not as good as what market players expected for September and October,” an international trader said.
During the given week, ferrous metal futures prices in China moved on an overall decreasing trend, exerting a negative impact on HDG prices in the spot market. At the same time, bearish sentiment has prevailed among market players and so downstream users have been cautious in concluding purchases for HDG.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 30/mt ($4.4/mt) week on week at RMB 4,833/mt ($714/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 17, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 3,687/mt ($545/mt), decreasing by RMB 45/mt ($6.6/mt) or 1.2 percent since September 10.
$1 = RMB 6.7675
