Ex-China hot dip galvanized (HDG) prices have moved down in the given period following weaker sentiments in the local and overseas markets.
Specifically, offers from large mills are heard at around $570-575/mt FOB for July shipment, moving down by $10/mt since June 12, though offer prices from smaller mills are heard at $560-565/mt FOB, decreasing by $7.5/mt compared to that recorded on June 12.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has been heard at $560-575/mt, versus the price of $570-585/mt FOB heard last week.
During the given week, HDG prices in the Chinese domestic market have edged down, though with slower declining pace. HDG producers’ capacity utilization rates increased slightly in the given week, resulting in relatively high supply to the spot market, exerting a negative impact on its prices. Currently, the demand for HDG has been slack as it has been in the traditional off-season amid the widespread rainy weather in southern China and the lower and middle reaches of Yangtze River. The inventory level is expected to see rises in the coming period, which will weaken the support to HDG prices. It is thought that HDG prices in the Chinese domestic market will edge down further in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 4/mt ($0.56/mt) compared to June 12, standing at RMB 3,843/mt ($536/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 19, HRC futures at Shanghai Futures Exchange are standing at RMB 3,103/mt ($432/mt), increasing by RMB 23/mt ($3.2/mt) or 0.75 percent since June 12, while up 0.13 percent compared to the previous trading day, June 18.
$1 = RMB 7.1729
