Ex-China hot dip galvanized (HDG) offer prices have posted minimal changes in the past week, but overall sentiment is still bullish. Offers are mainly at $950-970/mt FOB for late June shipment this week, remaining stable on average, while buyers need to bear any risks from the awaited tax rebate cut.
“Buyers from overseas markets have gradually accepted ex-China HDG offer prices, while the firm trend in the local market may bolster export offer prices,” an international trader said.
During the given week, HRC futures prices have moved up, exerting a positive impact on HDG prices, while buyers have started to be cautious due to the high level of prices. Meanwhile, inventory of HDG has risen slightly. It is thought that HDG prices in the Chinese domestic market will move sideways in the coming week ahead of the Labor Day holiday (May 1-5).
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 24/mt ($3.7/mt) week on week at RMB 6,400/mt ($976/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 22, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,552/mt (855/mt), increasing by RMB 159/mt ($24.5/mt) or 2.95 percent since April 15.
$1 = RMB 6.4902
