Ex-China hot dip galvanized (HDG) offer prices have edged down slightly in the past week, following the downtrend in the previous week. Offers are at $620-645/mt FOB this week, down by $2.5/mt on average compared to one week ago amid the declining trend in the local market.
Deal price levels have been heard at $615-620/mt FOB to Brazil, moving down by $2.5/mt on average compared to the rare contracts seen in the previous week. The sluggish demand in the local market has caused HDG producers to be more interested in exports.
“After the National Day holiday, demand for HDG in northern China may slow down further, while production restriction measures will lower the supply to the market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market continued their downtrend amid slack demand and prevailing bearish sentiments among market players. It is thought that HDG prices in the Chinese domestic market will likely move sideways as the long holiday is approaching.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 43/mt ($6.3/mt) week on week to RMB 4,790/mt ($704/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 24, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 3,674/mt ($545/mt), decreasing by RMB 13/mt ($1.9/mt) or 0.35 percent since September 17.
$1 = RMB 6.8028
