Ex-China hot dip galvanized (HDG) offer prices have moved sideways over the past week after the sharp rise last week. Offers are at $960-980/mt FOB for late April shipment this week, remaining stable on average compared to February 10. The deal price level is at $950-960/mt FOB.
“The government scrutiny of iron ore prices has weakened support for HDG prices, though market players hold an optimistic view of the future market prospects as they think demand will improve in the coming period,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have seen slight declines due to the decreasing trend of ferrous metal futures prices and the slow release of demand from downstream users. The Chinese government has implemented strict control of the iron ore market, exerting a negative impact on prices, which has weakened the support for HDG prices. However, demand for HDG will likely improve in the near future, which may prevent prices from falling further.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have dropped by RMB 37/mt ($6/mt) compared to February 10, standing at RMB 5,833/mt ($921.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 17, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,823/mt (762/mt), decreasing by RMB 246/mt ($39/mt) or 4.85 percent since February 10.
$1 = RMB 6.3321
