Ex-China hot dip galvanized (HDG) offer prices have moved down significantly over the past week. Offers from mills are at $950-970/mt FOB for late July shipment this week, down by $150/mt on average.
“Ex-China HDG prices have indicated sharp declines amid the prevailing panic sentiments and regulatory measures to curb quick rises in commodity prices, though steelmakers said demand has not shown big changes. The uncertainty regarding the export tax rebate has made buyers mostly hold a wait-and-see stance and they expect that ex-China HDG prices may see downward corrections until clarity on the rebate policy and a steady trend in local HDG prices,” an international trader said.
During the given week, domestic HDG prices in China have declined sharply amid big decreases in ferrous metal futures prices. Meanwhile, bearish sentiments have prevailed among market players, resulting in low transaction activities. It is thought that HDG prices in the Chinese domestic market will likely edge down slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 334/mt ($52.2/mt) week on week to RMB 6,786/mt ($1,060/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 27, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,186/mt ($810/mt), decreasing by RMB 369/mt ($57.6/mt) or 6.64 percent since May 20.
$1 = RMB 6.403
