Ex-China hot dip galvanized (HDG) offer prices have moved sideways amid different signals from the local market with the increasing trend seen in HRC futures prices and slight declines in local HDG prices. Pressure from the limited demand for ex-China HDG has remained, but the outlook for the situation in September has been a bit better.
Offers from mills this week are at $750-760/mt FOB for late October shipment, moving sideways compared to August 18 on average. Reference deal prices for ex-China HDG have been heard at $740/mt FOB, remaining stable compared to last week.
“The slack demand exerted a negative impact on ex-China HDG offer prices, while market players expected for better performance in the coming month,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have fluctuated within a limited range amid the declines in HRC futures prices first, though which indicated a rebounding trend in the latter part of the given week. However, the demand for HDG has not seen big improvements. Moreover, as it is approaching the end of the month, traders have borne heavy pressure from financial tightness. It is expected that HDG prices in the Chinese domestic market will move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 4/mt ($0.6/mt) compared to August 18 to RMB 4,856/mt ($709/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 25, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,000/mt (584/mt), rising by RMB 84/mt ($12.3/mt) or 2.1 percent since August 18.
$1 = RMB 6.8536