Ex-China HDG offers have remained stable over the past week since, even though demand has been rather slow and supply is still high, there has been no decline in the local market which has remained stable, providing support for export prices.
Specifically, offers from large Chinese mills stand at $635-640/mt FOB for August shipment, moving sideways compared to June 4, while offer prices from smaller mills have been heard at $630-635/mt FOB. As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $630-640/mt FOB.
During the given week, HDG prices in the Chinese domestic market have fluctuated within a limited range amid the slack demand from downstream users due to the ongoing hot weather conditions. Cautious sentiments prevail among market players. HDG producers’ capacity utilization rates have been at relatively high levels, resulting in sufficient supply to the spot market. HRC prices have indicated slight declines, exerting a negative impact on HDG prices. Continuous rainy weather in southern China has slowed down the construction activities of downstream users, negatively affecting HDG prices to a certain degree. Major Chinese steelmaker Baosteel has kept its HDG prices stable for delivery in July, which will bolster market sentiments. It is thought 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 gained RMB 7/mt ($1.0/mt) compared to June 4, standing at RMB 4,063/mt ($597.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 11, HRC futures at Shanghai Futures Exchange are standing at RMB 3,358/mt ($494/mt), decreasing by RMB 19/mt ($2.8/mt) or 0.6 percent since June 4, while down 0.33 percent compared to the previous trading day, June 10.
$1 = RMB 6.815
