Ex-China hot dip galvanized (HDG) offer prices have moved down in the past week, following the rising trend in the previous week. Offers are at $805-830/mt FOB for late March delivery this week, edging down by $30/mt on average compared to one week ago amid declining local HDG prices and decreasing HRC futures prices, though most steelmakers have stopped giving offer prices due to the Christmas and New Year holidays, while only one deal has been heard, at $770/mt FOB to Southeast Asia, down by $57.5/mt compared to the previous week.
“The declining pace of local Chinese HDG offer prices has been slower than for other flats amid the relatively low inventory levels, and demand for HDG has been less negatively affected than demand for other flats, which will provide support for HDG prices in the near future, and so ex-China HDG prices may move sideways in the future,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have declined sharply amid the downward corrections in HRC futures prices. Meanwhile, market players are cautious as regards the future prospects for the HDG market. At the same time, demand for HDG has been sluggish due to the approaching New Year holiday (January 1-3), which negatively affected prices. However, the relatively low inventory of HDG will bolster prices. It is thought that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 147/mt ($22.5/mt) week on week to RMB 6,216/mt ($953/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 31, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 4,554/mt ($698/mt), decreasing by RMB 30/mt ($4.6/mt) or 0.65 percent since December 24.
$1 = RMB 6.5249
