Offers for HDG Z120 from large Chinese mills are standing at $635-640/mt FOB for August shipment, moving sideways compared to June 11, while offer prices from smaller mills have been heard at $630-635/mt FOB.
During the given week, HDG prices in the Chinese domestic market have declined amid the slowdown in demand due to the rainy season. Downstream users have mostly concluded purchases only in line with their needs, exerting a negative impact on HDG prices. Meanwhile, bearish sentiments have prevailed among market players. Some traders have chosen to reduce prices to ease the pressure from increasing inventories. Since the Dragon Boat Festival (June 19-21) is approaching, demand for HDG may continue to be sluggish. It is expected that HDG prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 23/mt ($3.4/mt) compared to June 11, standing at RMB 4,040/mt ($593/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 18, HRC futures at Shanghai Futures Exchange are standing at RMB 3,349/mt ($492/mt), decreasing by RMB 9/mt ($1.3/mt) or 0.3 percent since June 11, while down 0.77 percent compared to the previous trading day, June 17.
$1 = RMB 6.813
