Ex-China hot dip galvanized (HDG) offer prices have moved down visibly over the past week, reflecting bearish sentiment and the significant drop seen in futures prices. Offers from mills are at $980-990/mt FOB for late June shipment this week, moving down by $20/mt compared to April 21 on average.
Moreover, the tradable level for making deals is $970/mt FOB or just slightly above.
“The sharp declines in the stock market have negatively affected market sentiments, while the continuing lockdown in Shanghai and strict control measures in other regions of China have also weakened the support for the HDG market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have increased amid transportation restrictions. At the same time, the control measures in Tangshan have resulted in the decline of the capacity utilization rates of HDG producers, which has provided support for HDG prices. However, the downtrend in the stock market has exerted a negative impact on market sentiments. It is thought that HDG prices in the Chinese domestic market will likely move sideways in the coming week, mainly due to the holidays.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved up by RMB 187/mt ($28.5/mt) compared to April 21, standing at RMB 6,170/mt ($941/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 28, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,950/mt (755/mt), decreasing by RMB 202/mt ($31/mt) or 3.92 percent since April 21.
$1 = RMB 6.5628
