Ex-China HDG offers have moved sideways over the past week after the previous decreases. Though weak demand has persisted, market sources believe prices will fluctuate in a limited range in the near future.
Specifically, offers from large Chinese mills stand at $590-595/mt FOB for August shipment, but some small Chinese mills and traders have kept their prices stable at $585/mt FOB.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $585-595/mt FOB, moving sideways over the past week. “There were some limited sales at $580-585/mt FOB, but I don't think it is necessary to go lower,” a Chinese source said.
During the given week, HDG prices in the Chinese domestic market have edged down slightly amid relatively sufficient supply. In the given period, production of HDG has declined slightly, causing inventories to decrease, though at a slow pace. The high summer temperatures and occasional heavy rainfall have reduced the demand for HDG. Major Chinese steelmaker Baosteel has raised HDG prices by RMB 50/mt ($7.4/mt) for delivery in August, aiming to bolster market sentiments. It is thought that HDG prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 3/mt ($0.44/mt) compared to July 16, standing at RMB 4,020/mt ($592/mt) ex-warehouse, according to SteelOrbis' information.
As of July 23, HRC futures at Shanghai Futures Exchange are standing at RMB 3,291/mt ($489.5/mt), decreasing by RMB 33/mt ($4.9/mt) or 1.0 percent since July 16, while increasing by 0.21 percent compared to the previous trading day, July 22.
$1 = RMB 6.7906
