Ex-China hot dip galvanized (HDG) prices have moved sideways in the past week, though sentiments have remained negative due to continuous drops in local HDG prices affected by the fall in HRC futures prices.
Specifically, offers from large mills are heard at around $580-590/mt FOB for June shipment, moving sideways since May 22, though offer prices from smaller mills are heard at $570-575/mt FOB, also remaining stable compared to May 22.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has been heard at $570-590/mt, the same as last week.
During the given week, HDG prices in the Chinese domestic market have seen slight declines amid the slack demand from downstream users. Transaction activities have declined, resulting in increasing inventories of HDG. The strong supply and weak demand in the HDG market will exert a negative impact on prices in the spot market. As the plum rainy season is approaching in the middle and lower reaches of the Yangtze River, demand for HDG is expected to slacken further. It is thought that HDG prices in the Chinese domestic market will likely edge down in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 43/mt ($6/mt) compared to May 22, standing at RMB 3,887/mt ($540/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 29, HRC futures at Shanghai Futures Exchange are standing at RMB 3,110/mt ($446/mt), decreasing by RMB 100/mt ($14/mt) or 3.1 percent since May 22, while up 0.32 percent compared to the previous trading day, May 28.
$1 = RMB 7.1907