Ex-China HDG offers have moved sideways over the past week amid the slight rises seen in local HDG prices.
Specifically, offers from large Chinese mills stand at $580-590/mt FOB for March shipment, remaining stable week on week, while offer prices from smaller mills have been heard at $565-575/mt FOB, versus $565-575/mt FOB last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $565-590/mt FOB, versus $565-590/mt FOB last week.
During the given period, HDG prices in the Chinese domestic market have fluctuated within a limited range. Some players have left the market ahead of the Chinese New Year holiday as their workers need to go back to their home regions in advance. Demand for HDG from downstream users has been slack, exerting a negative impact on prices. Meanwhile, there have been more HDG supplies entering the market in southern China, negatively affecting prices from the supply side. Moreover, market players are cautious as regards the prospects for the HDG market after the long holiday and so they have been unwilling to build up stocks, weakening the support for prices. It is thought that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 10/mt ($1.4/mt) compared to January 22, standing at RMB 3,920/mt ($562/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 29, HRC futures at Shanghai Futures Exchange are standing at RMB 3,308/mt ($474/mt), decreasing by RMB 21/mt ($3/mt) or 0.6 percent since January 22, while rising by 0.79 percent compared to the previous trading day, January 28.
$1 = RMB 6.9771
