Ex-China hot dip galvanized (HDG) offer prices have edged up further over the past few days, following a sharp increase early this week. Offers from Chinese mills are at $970-1,050/mt FOB for late June shipment at the moment, up by $10/mt on average from yesterday and $50/mt above the level seen last week.
China has issued its new tax rebate policy, cancelling the 13 percent export tax rebate on “other hot dip galvanized alloy steels for narrow flat rolled products, with width < 600 mm (customs code: 72269910)” as of May 1. However, for now the changes have not been made for coils and market sources are still waiting for the tax rebate cut from 13 percent to four percent for HDG coils. “The market will move on a stable trend later instead of the current continuous rising momentum,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have indicated big rises amid increasing HRC futures prices, while downstream users have mostly held a wait-and-see stance as regards the future prospects for the market following the quick price rises. Meanwhile, inventory of HDG has been at relatively low levels, bolstering prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 140/mt ($21.6/mt) week on week to RMB 6,540/mt ($1010.6/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 29, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,787/mt ($894/mt), increasing by RMB 235/mt ($36.3/mt) or 4.23 percent since April 22.
$1 = RMB 6.4715
