Ex-China hot dip galvanized (HDG) prices from most mills have moved sideways this week given the instability in the market provoked by fluctuations in ex-China HRC futures prices, while local HDG prices have remained unchanged over the past 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, remaining stable week on week.
During the given week, HDG prices have fluctuated within a limited range amid firm support from increasing HRC futures prices. At the same time, supply of HDG has been tight, also bolstering prices. Currently, demand and supply are in a balanced situation, still providing support for HDG prices. Moreover, market players expect that downstream users and traders may build up stocks for the winter season in the near future, which may exert a positive impact on the HDG market. It is expected that HDG prices in the Chinese domestic market will edge up slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved sideways compared to November 30, at RMB 4,833/mt ($681/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 7, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,114/mt (579/mt), edging up by RMB 7/mt ($1/mt) or 0.17 percent compared to November 30.
$1 = RMB 7.1176
