Ex-China hot dip galvanized (HDG) offer prices have moved up further in the past week, following the increasing trend in the previous week. Offers are at $710-735/mt FOB for late February shipment this week, edging up by $27.5/mt on average compared to one week ago amid increasing local HDG prices, rising HRC spot and futures prices, and limited allocation.
The deal price levels have been heard at $700-710/mt FOB, mostly to South America and Southeast Asia, edging up by $27.5/mt compared to the previous week.
“Supply of HDG to the export market has been very limited, and so buyers have been very active in concluding purchases for ex-China HDG, though overseas buyers have started to become more reluctant following the rapid rises in prices, while steelmakers will not lower their prices amid sufficient orders,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have indicated big rises amid rising futures prices and increasing raw material prices. Meanwhile, inventory of HDG has been at relatively low levels, and there has been a supply shortage in the market, bolstering prices. It is thought that HDG prices in the Chinese domestic market will move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 177/mt ($27/mt) week on week to RMB 5,380/mt ($820/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 3, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 4,229/mt ($645/mt), increasing by RMB 147/mt ($22.4/mt) or 3.6 percent since November 26.
$1 = RMB 6.5592
