Ex-China hot dip galvanized (HDG) offer prices have moved up over the past week, supported by the trend reversal in the local market. Offers are at $1,000-1,020/mt FOB for late July shipment this week, up by $50/mt on average.
“Ex-China HDG prices have seen a rebounding trend amid the bottoming up of local HDG prices, while buyers from overseas markets have been cautious. Small-volume deals were at $960-970/mt FOB, and it is thought that prices may fluctuate at higher levels within a limited range in the short term,” an international trader said.
During the given week, domestic HDG prices have declined slightly for thick specifications, though they indicated rises for thin specifications, amid the rebounding trend in ferrous metal futures prices. Downstream users mostly purchased in line with their needs. It is thought that HDG prices in the Chinese domestic market will likely stabilize in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 10/mt ($1.57/mt) week on week to RMB 6,776/mt ($1,062/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 3, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,490/mt (860/mt), increasing by RMB 304/mt ($47.6/mt) or 5.86 percent since May 27.
$1 = RMB 6.3811
