Ex-China hot dip galvanized (HDG) offer prices have moved down in the past week, following some declines seen in the previous week, but the pace of decrease has increased visibly this week. Offers are at $790-820/mt FOB for late March shipment this week, moving down by $57.5/mt on average compared to one week ago amid the worsening of the Covid-19 pandemic in many regions in China.
“The worsening Covid-19 pandemic in many regions in China has negatively affected demand for HDG in the local market, resulting in big declines in local HDG prices and more supplies circulating into the export market,” an international trader said.
During the given week, HDG prices have moved down due to slacker demand amid the approach of the Chinese New Year holiday (February 11-17) and the worsening of the Covid-19 pandemic in China. Inventory levels have risen slightly, exerting a negative impact on the HDG market. Market players have chosen to sell at lower prices, aiming to bring in cash and ease financial tightness by the end of the Chinese year.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 70/mt ($10.8/mt) week on week to RMB 6,033/mt ($931/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 21, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 4,430/mt ($684/mt), increasing by RMB 1/mt ($0.15/mt) or 0.02 percent since January 14. Futures prices have indicated some improvement recently, giving hope for price stabilization in the near future.
$1 = RMB 6.4836
