Ex-China hot dip galvanized (HDG) offer prices have moved on an uptrend in the past week, following the sharply rising trend in the previous week. Offers are at $675-700/mt FOB for late January delivery this week, edging up by $10/mt on average compared to one week ago amid a shortage of supply for the export market, strong ferrous metal futures prices, rising local HDG prices, and the appreciation of the Chinese currency.
Deal prices have been heard at $655-675/mt FOB, mostly to South America, Southeast Asia and the Middle East, up by $12.5/mt compared to the previous week. “There have been limited HDG supplies for the export market, bolstering ex-China HDG prices,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have continued to edge up amid tight supply. Meanwhile, inventory of HDG has been at relatively low levels, providing support for prices. It is thought that HDG prices in the Chinese domestic market will edge up further in the coming week. Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 70/mt ($10.7/mt) week on week to RMB 5,180/mt ($791/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 19, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 4,078/mt ($622.6/mt), increasing by RMB 155/mt ($24/mt) or 3.95 percent since November 12.
$1 = RMB 6.5484
