Due to the firm trend in the Chinese domestic hot dip galvanized (HDG) market, ex-China HDG offer prices are currently at $580-595/mt FOB this week, up $2.5/mt on average week on week, while buyers have been bidding at $580/mt FOB.
During the given week, supply shortage in HDG market bolstered HDG prices. Average 1.0 mm SGCC hot dip galvanized spot prices in China have risen by RMB 10/mt ($1.4/mt) week on week to RMB 4,720/mt ($676.2/mt) ex-warehouse, according to SteelOrbis’ information. However, buyers have only concluded only necessary purchases due to financial tightness when it is approaching to the end of the year.
Part of market participants in export market left the market due to Christmas holiday, resulting in quiet transaction activities. The HDG market will likely remain quiet in the coming week due to the approaching New Year holiday.
As of December 26, HRC futures at the Shanghai Future Exchange are standing at RMB 3,557/mt ($509.6/mt), increasing by RMB 13/mt ($1.9/mt) or 0.4 percent since December 19.
$1 = RMB 6.9801
