Ex-China hot dip galvanized (HDG) offer prices have moved down in the past week, following an increasing trend in the previous week. Offers are at $600-620/mt FOB for late October shipment this week, down by $5/mt on average compared to one week ago. Though the firm trend in the local market and the high levels of iron ore prices have supported suppliers, demand has started to weaken after a number of deals were concluded.
The reference deal prices have been heard at $590-610/mt FOB, mostly to Southeast Asia and South America, moving down by $5/mt on average compared to the previous week.
“Following continuous rises in ex-China HDG offer prices, major steelmakers in China have lowered their offer prices, though a few of them have raised the offer prices to $630/mt FOB, with no deal being heard. Market players think it will likely take two weeks before another round of orders from South America,” an international trader told SteelOrbis.
During the given week, downstream users have been cautious towards concluding HDG purchases in the Chinese domestic market as prices are at high levels. However, after steelmakers raised their ex-works prices for HDG, traders have been unwilling to lower prices for HDG. 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 moved sideways week on week at RMB 4,803/mt ($693/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 27, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 3,946/mt ($572/mt), decreasing by RMB 21/mt ($3.0/mt) or 0.53 percent since August 20.
$1 = RMB 6.8903
