Ex-China hot dip galvanized (HDG) prices have moved sideways over the past week, though a further decline has been seen in the local market and sentiments in general are still weak.
Specifically, offers from large mills are still heard at around $635-645/mt FOB for September shipment, moving sideways on average compared to July 11. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $630-635/mt FOB, remaining stable compared to last week. However, for Z80 1 mm HDG some mills are ready to offer $620/mt FOB.
During the given week, HDG prices in the Chinese domestic market have declined amid decreasing raw material prices and sluggish demand from downstream users. Most traders are cautious as regards the future prospects for the HDG market.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 57/mt ($8/mt) compared to July 11, standing at RMB 4,370/mt ($613/mt) ex-warehouse, according to SteelOrbis’ information. It is expected that HDG prices in the Chinese domestic market will likely move in a narrow range in the coming week.
As of July 18, HRC futures at Shanghai Futures Exchange are standing at RMB 3,673/mt ($515/mt), decreasing by RMB 30/mt ($4.2/mt) or 0.81 percent since July 11, while down 0.76 percent compared to the previous trading day, July 17.
$1 = RMB 7.1285
