Ex-China hot dip galvanized (HDG) offer prices have edged up slightly over the past week owing to the better situation in the local market, though the optimism among market sources has mostly been cautious.
Offers from Chinese mills this week are at $800/mt FOB for late April shipment, edging up by $10/mt compared to February 16 on average. Reference deal prices for ex-China HDG have been heard at $790/mt, FOB, increasing by $10/mt compared to last week.
“Downstream users have been more willing to build up stocks, reflecting bullish sentiments among market players as regards the future prospects for the HDG market amid the increasing trend of HRC futures prices,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have risen given the full resumption of production by downstream users. Transaction activities have improved, bolstering market sentiment. Meanwhile, HRC futures prices have indicated an overall uptrend, exerting a positive impact on the HDG market. It is expected that HDG prices in the Chinese domestic market will likely move sideways or post a further gradual improvement in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 120/mt ($17.4/mt) compared to February 16, standing at RMB 4,890/mt ($709/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 23, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,285/mt (621/mt), increasing by RMB 56/mt ($10.1/mt) or 1.3 percent since February 16.
$1 = RMB 6.9028
