Ex-China hot dip galvanized (HDG) offer prices have edged down slightly amid decreasing HRC futures prices and stock replenishments by downstream users not being as good as market players had expected.
Offers from mills this week are at $700-710/mt FOB for late November shipment, edging down by $5/mt compared to September 21 on average. Meanwhile, the reference deal prices for ex-China HDG have been heard at $670-700/mt FOB, versus $680-705/mt FOB last week.
“Though stock replenishments have not been as good as expected in China, the relatively low inventory has still provided some support for HDG prices,” an international trader told SteelOrbis.
During the given week, HDG prices in the Chinese domestic market have moved on a downward trend as demand from downstream users has not been as good as market players had expected. Since the long National Day holiday (September 29-October 6) is about to start, purchasing activities are unlikely to improve.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 66/mt ($9.2/mt) compared to September 21, standing at RMB 4,787/mt ($668/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 28, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,795/mt (529/mt), moving down by RMB 48/mt ($6.7/mt) compared to that recorded on September 21.
$1 = RMB 7.1798