Ex-China hot dip galvanized (HDG) offer prices have moved sideways over the past week, as sellers have remained inactive and have not been ready to cut prices in the current uncertain market situation. Offers are at $1,150-1,180/mt FOB for late October shipment this week.
“Demand from overseas buyers has remained slack, and they have been unwilling to buy ex-China HDG,” an international trader said. Some market sources believe that in the current weak conditions ex-China HDG prices should hardly exceed $1,070/mt FOB to attract customers.
During the given week, China’s local HDG prices have declined slightly amid declining HRC futures prices and relatively slack demand. Traders are cautious as regards the future market prospects, and so they have chosen to sell at lower prices to bring in funds.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 24/mt ($3.7/mt) week on week to RMB 6,796/mt ($1,052/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 2, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,571/mt (862/mt), increasing by RMB 169/mt ($26.2/mt) or 3.13 percent since August 26.
$1 = RMB 6.4594
