Ex-China hot dip galvanized (HDG) offer prices have moved sideways in the past week after increasing in the previous week, with most suppliers unwilling to give firm offers, awaiting the final decision on the anticipated export tax rebate cut. Offers from Chinese mills are at $850-880/mt FOB for late May shipment this week, moving sideways on average week on week.
The reference deal prices have also remained unchanged week on week at $840-860/mt FOB. “Rare offers of ex-China HDG have been available in the market as most suppliers are out of the export market, awaiting the final announcement of the anticipated export tax rebate cut. Market players think the prices may fluctuate within a limited range before the policy is clarified,” an international trader said.
During the given week, HRC futures prices in China have moved on an overall rising trend, bolstering local HDG prices. However, downstream buyers have been cautious as regards purchases at the current high levels. Inventory of HDG has been at relatively low levels, exerting a positive impact on prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 30/mt ($4.6/mt) week on week to RMB 6,196/mt ($950/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 25, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,130/mt ($787/mt), increasing by RMB 25/mt ($3.8/mt) or 0.5 percent since March 18.
$1 = RMB 6.5282
