Ex-China hot dip galvanized (HDG) offer prices have been stable over the past week. Offers are at $1,050-1,070/mt FOB for late December shipment this week, but trading has been muted and overall sentiments have worsened due to the sharp drop in futures prices in China lately.
“The decreasing trend in local HDG prices and the declining HRC futures prices will exert a negative impact on ex-China HDG offer prices in the near future,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have declined amid the prevailing bearish sentiments and the overall decreasing trend of HRC futures prices. Downstream users have been unwilling to conclude purchases given the current downward momentum. It is expected that HDG prices in the Chinese domestic market will edge down in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 103/mt ($16.1/mt) week on week to RMB 6,833/mt ($1,069/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 21, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,286/mt (827/mt), decreasing by RMB 380/mt ($59.5/mt) or 6.7 percent since October 14.
$1 = RMB 6.389
