Ex-China hot dip galvanized (HDG) offer prices have indicated a slight uptrend since, though even overall sentiments have been not so good and demand has been at reduced levels, some specifications of coils have been in short supply.
Offers from mills this week are at $735/mt FOB for late February shipment, edging up by $5/mt compared to December 15 on average. Reference deal prices for ex-China HDG have remained at $700/mt FOB on average, though some mills claimed they would not accept below $720/mt FOB due to low allocation.
“The supply shortage of HDG has bolstered prices, while demand for HDG has remained slack, and traders have been unwilling to build up stocks at the current high price levels,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have fluctuated within a limited range. The easing of Covid-19 measures has resulted in mass infections in China, which have exerted a negative impact on every link of the supply chain in the HDG market. Demand for HDG from downstream users has been slack as market players have considered prices to be at relatively high levels. However, raw material prices have provided support for the HDG market. It is expected that HDG prices in the Chinese domestic market will continue their fluctuating trend within a limited range.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 10/mt ($1.4/mt) compared to December 15 to RMB 4,886/mt ($701/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 22, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,025/mt (577.5/mt), decreasing by RMB 124/mt ($18/mt) or 3.0 percent since December 15.
$1 = RMB 6.9713