Ex-China hot dip galvanized (HDG) prices from most mills have remained stable this week amid the continuous fluctuations in domestic HDG and HRC futures prices.
Specifically, offers from large mills have been heard at around $735-740/mt FOB for February shipment, the same as last week. Meanwhile, the reference deal prices for ex-China HDG have been heard at around $720/mt FOB, moving sideways week on week.
During the given week, HDG prices in the Chinese domestic market have fluctuated within a limited range this week. Since activities at construction sites have slowed down, especially in northern China due to cold weather, demand for HDG has slackened. The consumption of HDG has been weak, exerting a negative impact on prices. However, major Chinese steelmakers, including Baosteel, Anshan Iron and Steel and Benxi Iron and Steel, have raised HDG prices by RMB 100/mt ($14/mt) for delivery in January next year, which will bolster prices. It is thought that HDG prices in the Chinese domestic market will likely continue to indicate a fluctuating trend within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 6/mt ($0.85/mt) compared to December 7, standing at RMB 4,827/mt ($680/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 14, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,047/mt (570/mt), moving down by RMB 67/mt ($9.4/mt) or 1.63 percent compared to December 7.
$1 = RMB 7.109
