Ex-China hot dip galvanized (HDG) offer prices have edged up in the past week amid the increasing trend in local prices, but buying activity has been limited. Offers are at $850-880/mt FOB for late May shipment this week, moving up by $10/mt on average.
The workable deal prices for suppliers have been heard at $840-860/mt FOB, also $10/mt higher than a week ago. “A steelmaker in Hebei Province is heard to be willing to close deals at $860/mt, while overseas buyers have been cautious in concluding purchases,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have edged up amid a rebounding trend in HRC futures prices, while downstream users have been cautious in purchases, resulting in low-to-medium levels of transaction activity. Meanwhile, the inventory of HDG has risen slightly. It is thought that HDG prices in the Chinese domestic market may edge up further in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 46/mt ($7/mt) week on week to RMB 6,166/mt ($951/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 18, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,005/mt ($758/mt), increasing by RMB 80/mt ($12.3/mt) or 1.62 percent since March 11.
$1 = RMB 6.4859
