Ex-China hot dip galvanized (HDG) prices from most mills have moved sideways this week mainly given the slow trade activity affected by the lack of clarity over the future trend, since, while HRC futures prices have kept increasing, a downtrend has been seen in local HDG prices.
Specifically, offers from large mills have been heard at around $700/mt FOB for December-January shipment. Meanwhile, the reference deal prices for ex-China HDG have been heard at $660-690/mt FOB, remaining stable week on week.
Though sentiments among market players have improved amid China’s issuance of additional special bonds worth RMB 1 trillion for 2023 in the October-December period, demand for HDG has not seen improvements, exerting a negative impact on HDG prices. Some HDG supplies from northern China have been arriving in the spot market, negatively affecting HDG offer prices, especially those of private producers. Traders in the HDG market have had to adjust their offer prices downward. At the same time, buyers in the HDG market have mostly been holding a wait-and-see stance as regards purchases.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 47/mt ($6.5/mt) compared to October 26, standing at RMB 4,683/mt ($652/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 2, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,858/mt (537/mt), moving up by RMB 63/mt ($8.8/mt) or 1.7 percent compared to October 26.
$1 = RMB 7.1797
