Ex-China hot dip galvanized (HDG) prices from mills have remained relatively stable this week, though offers from smaller mills and traders have increased slightly amid increasing HRC futures prices and rising local HDG offer prices.
Specifically, offers from large mills are still heard at around $735-740/mt FOB mainly for March shipment, moving sideways compared to last week. Meanwhile, the reference deal prices for ex-China HDG have been heard at around $710-730/mt FOB, versus $700-720/mt CFR last week.
During the given week, HDG prices in the Chinese domestic market have seen slight rises amid increasing iron ore prices. However, demand for HDG has been slack, which will exert a negative impact on prices in the near future. Following the New Year holiday, China has issued several stimulus policies to boost economic development, which will bolster market sentiments. At the same time, more steelmakers will implement maintenance works ahead of the Chinese New Year holiday, which will reduce production and provide support for HDG prices from the supply side.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 20/mt ($2.8/mt) compared to December 28, standing at RMB 4,847/mt ($683/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 4, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,147/mt ($584/mt), increasing by RMB 51/mt ($7.2/mt) or 1.25 percent compared to December 28, while indicating a decline of 0.38 percent compared to the previous trading day (January 3).
$1 = RMB 7.0997
