Ex-China hot dip galvanized (HDG) offer prices have moved up sharply in the past week amid the increasing trends in HRC futures prices in China, the uptrend in the local flat steel market and rising iron ore prices, in line with expectations. Offers are at $820-850/mt FOB for late April shipment this week, moving up by $40/mt on average against the background of big rises in finished steel prices in the local market, though reference deal prices have been heard at $800-820/mt FOB.
“Following the Chinese New Year holiday, buyers from overseas markets have been willing to buy HDG from China, while they need more time to accept the big rises in ex-China HDG prices,” an international trader said.
During the given week, local HDG prices in the Chinese domestic market have indicated big rises amid the increasing ferrous metal futures prices and iron ore prices. Following the Chinese New Year holiday, demand for HDG from downstream users has improved gradually, bolstering prices. It is thought that HDG prices in the Chinese domestic market will likely edge up further in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 64/mt ($9.9/mt) week on week to RMB 6,160/mt ($955/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 25, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 4,908/mt ($761/mt), increasing by RMB 200/mt ($31/mt) or 4.24 percent since February 18.
$1 = RMB 6.4522
