Ex-China hot dip galvanized (HDG) offer prices have continued their downtrend over the past week, even though there are strong signals that the market may rebound in the near future, following futures price gains. Offers from mills are at $820-830/mt FOB for late August shipment this week, down by $50/mt compared to June 23 on average. Reference deal prices of ex-China HDG have been heard at $800-820/mt FOB, versus $850/mt FOB last week.
“Steelmakers haven’t received sufficient orders for August, reflecting slack demand for HDG, which has exerted a negative impact on prices, while market players expect that the situation may only improve in September when the weather gets cooler,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have edged up amid rising HRC futures prices and rebounding local HRC and CRC prices. However, demand has remained slack, while inventory levels have risen slightly. It is thought that HDG prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 6/mt ($0.9/mt) compared to June 23, standing at RMB 5,646/mt ($841/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 30, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,412/mt (657.5/mt), increasing by RMB 127/mt ($19/mt) or 3.0 percent since June 23.
$1 = RMB 6.7114
