Ex-China hot dip galvanized (HDG) offer prices have fluctuated within a limited range in the past week - after declining in the previous week - amid a slight improvement of the situation in the local market and some sales overseas. Offers are at $510-535/mt FOB for late May delivery this week, with the low-end of offer prices $5/mt lower compared to one week ago. At the same time, deals have been heard at $508-520/mt FOB to Southeast Asia and South America.
“The continuous declines over the past several weeks finally ended. Transaction activities have been more active than before. However, the recovery of domestic demand is still limited and buyers from overseas markets lack confidence as regards the future prospects for the HDG market,” a trader told SteelOrbis.
During the given week, downstream users in China concluded more purchases of HDG, bolstering domestic prices. However, inventories are at relatively high levels, which has exerted a negative impact on the HDG market. Meanwhile, market players are facing tight liquidity, which will also negatively affect the HDG market.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have increased by RMB 14/mt ($2.0/mt) week on week to RMB 4,320/mt ($611/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 16, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,234/mt ($457.3/mt), increasing by RMB 85/mt ($12/mt) or 2.7 percent since April 9.
$1 = RMB 7.0714
