Ex-China hot dip galvanized (HDG) offer prices have moved up in the past week amid the increasing trend in local prices and rising HRC futures prices in China, while market sources are still waiting for the final announcement of the export tax rebate cut. Offers are at $860-910/mt FOB for late May shipment this week, moving up by $20/mt on average.
The reference deal prices have increased by $10/mt over the past week to $850-870/mt FOB.
“Most suppliers have been waiting for the final announcement of the anticipated export tax rebate cut, and so only rare offers of ex-China HDG were heard, while a few steelmakers raised their prices, trying to transfer the potential extra burden to buyers,” an international trader said. According to the preliminary information in the market, the export tax rebate for HDG is expected to be cut from 13 percent to four percent.
During the given week, domestic HDG prices in China have risen amid increasing HRC futures prices and rising feedstock prices. Downstream buyers have been cautious as regards concluding purchases, moreover, as they believe that the overall supply volume may increase in the near term. Currently, inventory of HDG is at relatively low levels.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 57/mt ($8.7/mt) week on week to RMB 6,253/mt ($953.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 1, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,467/mt (834/mt), increasing by RMB 337/mt ($51.4/mt) or 6.6 percent since March 25.
$1 = RMB 6.5584
