Ex-China hot dip galvanized (HDG) offer prices have moved down sharply over the past week. Offers are at $1,070-1,100/mt FOB for late November shıpment this week, moving down by $55/mt week on week on average.
“The declining prices in the local market and in ferrous futures prices have exerted a negative impact on ex-China HDG offer prices,” an international trader said. Moreover, some deals have been reported after discounts. In particular, trades to South America and Asia have been reported at $1,050-1,070/mt FOB for Z120 HDG.
During the given week, China’s local HDG prices have declined slightly amid decreasing HRC futures prices and the prevailing cautious sentiments among market players. Demand for HDG has remained slack as the Mid-Autumn Day and National Day holidays are approaching. 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 lost RMB 7/mt ($1.1/mt) week on week to RMB 6,803/mt ($1,057.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 16, HRC futures prices at Shanghai Futures Exchange are standing at RMB 5,743/mt (893/mt), decreasing by RMB 150/mt ($23.3/mt) or 2.55 percent since September 9.
$1 = RMB 6.433
