Ex-China hot dip galvanized (HDG) offer prices have moved down in the past week, following an increasing trend in the previous week. Offers are at $855-870/mt FOB for late March shipment this week, edging down by $15/mt on average compared to one week ago amid the worsening impact of the Covid-19 pandemic on the local market.
“The rapid spread of the Covid-19 pandemic in northern China has negatively affected the demand for HDG in the local market, causing steel mills be more willing to export HDG to overseas markets,” an international trader said.
During the given week, domestic HDG prices have declined amid decreasing ferrous metal futures prices. Currently, market players think that HDG prices are too high for them and so they have been maintaining a wait-and-see stance. At the same time, inventory levels of HDG have not seen big changes, which will provide support for prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 57/mt ($8.8/mt) week on week to RMB 6,103/mt ($945/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 14, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 4,429/mt ($684/mt), decreasing by RMB 228/mt ($35.2/mt) or 4.9 percent since January 7.
$1 = RMB 6.4746
