Ex-China hot dip galvanized (HDG) prices from most mills have remained relatively unchanged over the past week, though, according to sources, the tradable price levels have moved up slightly amid firm support from raw materials. However, HRC futures prices and iron ore futures prices have indicated a slight downtrend during the week.
Specifically, offers from large mills have been heard at around $735-740/mt FOB for January shipment, the same as last week. Meanwhile, the reference deal prices for ex-China HDG have been heard at around $720/mt FOB, up by $10/mt week on week.
During the given week, HDG prices in the Chinese domestic market have declined amid decreasing HRC futures prices. However, HDG prices from state-owned producers have been quite firm, bolstering the HDG market to a certain degree. A new round of cold weather has hit China, exerting a negative impact on market sentiments. At the same time, following a two-day decline in iron ore futures prices, they rose by 1.36 percent again on November 30, signalling that support from raw materials will continue in the near future. Besides, another round of hikes in coke prices has been heard, which will also positively affect HDG prices from the cost side.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 24/mt ($3.4/mt) compared to November 23, standing at RMB 4,833/mt ($681/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 30, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,007/mt (563/mt), edging down by RMB 7/mt ($1/mt) or 0.17 percent compared to November 23.
$1 = RMB 7.1018
