Ex-China hot dip galvanized (HDG) offer prices have declined over the past week due to falling HRC futures prices and slack demand.
Offers from large mills this week are at $830/mt FOB for late May shipment, edging down by $10/mt compared to March 16 on average. The reference deal price for ex-China HDG has been heard at $790/mt FOB at the highest, decreasing by $15/mt on average compared to last week.
“Import iron ore prices have moved down amid the risk warning against rises in ore prices, which has negatively affected HDG prices from the cost side, and weakening sentiments in the steel market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved down amid decreasing HRC futures prices. Demand for HDG has been slack, though market players expect a better situation in the near future. 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 27/mt ($3.9/mt) compared to March 16, standing at RMB 4,950/mt ($720.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 23, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,221/mt (614/mt), decreasing by RMB 89/mt ($13.0/mt) or 2.1 percent since March 16.
$1 = RMB 6.8709
