Ex-China hot dip galvanized (HDG) offer prices have declined over the past week, following losses in the local market and continuing pressure from weak demand. Offers from large mills are at $900-920/mt FOB for late August shipment this week, down by $15/mt compared to June 9 on average.
Reference deal prices of ex-China HDG have been heard at $890-900/mt FOB, down $10/mt compared to last week.
“The cautious sentiments prevailing among market players amid the rainy season in eastern and southern China and declining HRC futures prices have negatively affected the HDG market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have seen a downtrend amid decreasing HRC and CRC prices. Currently, demand for HDG has remained slack due to the rainy weather in eastern and southern China and the overall outlook has been bearish, as fears of a further spread of Covid-19 have emerged again. However, production costs have prevented HDG prices from falling too sharply.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have edged down by RMB 67/mt ($10/mt) compared to June 9 to RMB 6,053/mt ($903/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 16, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,609/mt (687/mt), decreasing by RMB 264/mt ($39.4/mt) or 5.4 percent since June 9.
$1 = RMB 6.7099
