Ex-China hot dip galvanized (HDG) offer prices have moved up slightly in the past week - following a stable trend in the previous week - due to the rising trend in the local market. Offers are at $520-540/mt FOB for late July this week, moving up by $7.5/mt on average compared to one week ago. At the same time, deals have been heard at $510-520/mt FOB to Thailand, the Middle East and South America. Last week, the tradable value has been at $510/mt FOB on average.
“The firm trend in the local HDG market has made steelmakers cut their allocation for export, while demand in the overseas markets is expected to recover slowly amid the lift of lockdowns, which will exert a positive impact on the HDG market,” a trader said.
During the given week, HRC futures prices in China have moved up continuously, exerting a positive impact on market players’ sentiments. Meanwhile, the resumption of high-speed road tolls (which were free of charge previously due to the outbreak of the coronavirus) and rising raw material prices have provided support for HDG prices from the cost side. Moreover, inventory of HDG has decreased, also positively affecting the HDG market.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have increased by RMB 30/mt ($4.2/mt) week on week to RMB 4,326/mt ($609.7/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 14, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,305/mt ($466/mt), increasing by RMB 39/mt ($5.5/mt) or 1.2 percent since May 7.
$1 = RMB 7.0948
