Ex-China hot dip galvanized (HDG) offer prices have moved sideways in the past week. Offers are at $550-560/mt FOB for late September delivery this week. At the same time, deal prices have been heard at $550/mt FOB for small volumes to South America and the Middle East.
“Demand from overseas buyers has been slack and exports of HDG will likely be quiet in the coming period,” one trader said.
During the given week, the high levels of raw material prices and tight supply of HDG have pushed up local HDG prices. Meanwhile, inventory of HDG has seen slight rises, though remaining at relatively low levels, which will provide support for prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have edged up by RMB 30/mt ($4.3/mt) week on week at RMB 4,493/mt ($637/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 2, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 3,563/mt ($505/mt), decreasing by RMB 57/mt ($8.1/mt) or 1.6 percent since June 18.
$1 = RMB 7.0566
