Ex-China hot dip galvanized (HDG) prices from most mills have edged up slightly this week amid increasing HRC futures prices and the uptrend of local HDG prices.
Specifically, offers from large mills have been heard at around $705/mt FOB for January shipment, increasing by $5/mt compared to November 2. Meanwhile, the reference deal prices for ex-China HDG have been heard at $665-695/mt FOB, up by $5/mt week on week.
During the given week, HDG producers’ offer prices have seen rises amid the increasing trend seen in ferrous metal futures prices and rising import iron ore prices. Sentiments have improved among market players due to the stimulus policies issued by China. However, since a round of cold weather has hit China, demand for HDG may slacken in the near future, which will negatively affect 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 gained RMB 24/mt ($3.3/mt) compared to November 2, standing at RMB 4,707/mt ($656/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 9, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,953/mt (551/mt), moving up by RMB 95/mt ($13.2/mt) or 2.5 percent compared to November 2.
$1 = RMB 7.1772
