Ex-China hot dip galvanized (HDG) tradable prices have dropped this week in line with declines in other segments like HRC and CRC, even though major steelmakers have kept their local offer prices stable for delivery in November.
Offers from large mills have remained at around $700/mt FOB for December shipment. But, the reference deal prices for ex-China HDG have been lowered to $650-690/mt FOB, dropping from $670-700/mt FOB before the holiday. Market sources report that some mills, which have been struggling to sell, have offered as low as $640-646/mt FOB for Z80 HDG, which is around $10 cheaper than the Z120 benchmark price.
“Major Chinese steelmakers have held their domestic HDG prices stable for delivery in November, while import iron ore prices have been on the rise again, which may bolster the HDG market in the near future,” an international trader said.
After the holiday, HDG prices in the Chinese domestic market have moved down amid decreasing HRC futures prices. At the same time, major Chinese steelmakers, including Baosteel, Anshan Iron and Steel and Benxi Iron and Steel, have kept their prices stable for delivery in November. Over the past two trading days, import iron ore prices have shifted from a downtrend to an uptrend, which will exert a positive impact on HDG prices in the near future. It is expected that HDG prices in the Chinese domestic market will likely remain stable in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 50/mt ($7/mt) compared to September 28, standing at RMB 4,737/mt ($660/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 12, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,731/mt (520/mt), moving down by RMB 64/mt ($9/mt) compared to September 28.
$1 = RMB 7.1776
