Ex-China HDG offer prices have moved sideways in the past week, following sharp declines recorded on March 26 due to the increased spread of the coronavirus worldwide. Offers are currently at $540-545/mt FOB for late May delivery, stable compared to one week ago. At the same time, bids from buyers have been heard at as low as $510/mt FOB to Southeast Asia, though only a few steelmakers have been giving offers and have been ready to negotiate.
“Demand from overseas customers has slackened further as more countries implemented lockdowns due to the coronavirus pandemic, and market players are worried about the future market amid concerns of an economic downturn,” a trader said.
During the given week, ferrous metal futures prices in China have declined due to the impact of the coronavirus on sentiment. Traders in the local Chinese HDG market have chosen to sell at lower prices to bring in cash and avoid potential risks. Meanwhile, inventories in the HDG market are still rising, which will exert a negative impact on HDG prices in the near future.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 160/mt ($22.5/mt) week on week to RMB 4,326/mt ($609.3/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 2, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,078/mt ($433.5/mt), decreasing by RMB 216/mt ($30.4/mt) or 6.6 percent since March 26.
$1 = RMB 7.0995
