Ex-China hot dip galvanized (HDG) offer prices have moved sideways over the past week. Offers from large mills are at $910-920/mt FOB for late February shipment this week, remaining stable week on week on average. Deals have still been reported in this range, to South America specifically, though overall sales volumes have been limited.
“Ex-China HDG offer prices have remained stable amid the quiet demand in overseas markets due to the Christmas holiday, while decreasing trends in HRC futures prices and local HDG prices may negatively affect export offer prices in the near future,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have declined amid the decreasing trend of HRC futures prices and the prevailing bearish sentiments among market players. Demand for HDG has remained slack, resulting in a wait-and-see stance as regards the future prospects for the market. It is thought that HDG prices in the Chinese domestic market will likely edge down slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have declined by RMB 40/mt ($6.3/mt) week on week to RMB 5,803/mt ($911.7/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 23, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,584/mt (720.2/mt), decreasing by RMB 135/mt ($21.2/mt) or 2.86 percent since December 16.
$1 = RMB 6.3651
