Ex-China HDG offers have moved sideways over the past week amid the ongoing tensions in the Middle East, while the local market has continued to show stronger sentiments following rises in HRC futures prices in China.
Specifically, offers from large Chinese mills stand at $610-620/mt FOB for May shipment, remaining stable compared to March 12, while offer prices from smaller mills have been heard at $595-605/mt FOB.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has remained at $595-620/mt FOB.
During the given period, HDG prices in the Chinese domestic market have indicated rises amid rising HRC futures prices. Improved transaction activities have consumed inventories, easing the pressure on the inventory side. Most market players think inventories may continue to decrease in the near future and bolster HDG prices. Meanwhile, increasing iron ore prices have also provided support for HDG prices from the cost side. However, the ongoing war in the Middle East has exerted a negative impact on market sentiments, especially given the sharp declines in financial markets. It is thought that HDG prices in the Chinese domestic market will edge up slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 47/mt ($6.8/mt) compared to March 12, standing at RMB 4,020/mt ($583/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 19, HRC futures at Shanghai Futures Exchange are standing at RMB 3,302/mt ($478.5/mt), increasing by RMB 27/mt ($3.9/mt) or 0.8 percent since March 12, while decreasing by 0.36 percent compared to the previous trading day, March 18.
$1 = RMB 6.8975
