Ex-China hot dip galvanized (HDG) prices have moved sideways over the past week. Offers from mills are at $910-920/mt FOB for late March shipment this week, while the outlook has been cautiously optimistic.
“Ex-China HDG offer prices have remained stable amid the slack demand in overseas markets due to the New Year holiday, while rebounding HRC futures prices may bolster 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 indicated slight declines amid the prevailing cautious sentiments among market players. Following the New Year holiday, demand for HDG has remained slack, exerting a negative impact on prices, while the rebounding trend of HRC futures prices has provided some support for the HDG market. It is thought that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 7/mt ($1.1/mt) week on week to RMB 5,766/mt ($904/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 6, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,638/mt (727/mt), increasing by RMB 227/mt ($35.6/mt) or 5.15 percent since December 30.
$1 = RMB 6.3728
