Ex-China hot dip galvanized (HDG) offer prices have moved up in the past week owing to stronger prices in the domestic market and the focus on local sales. Offers are at $545-555/mt FOB for late July shipment this week, up $10/mt compared to one week ago amid the rising trend in local HDG prices and raw material prices. At the same time, reference deal prices have been heard at $540-545/mt FOB to Southeast Asia and South America.
“Prices and demand in the Chinese domestic HDG market have been better than in the overseas market, and so traders and steelmakers have not been active in seeking exporting opportunities,” said a trader.
During the given week, HDG prices have increased significantly amid increasing raw material prices and rising ferrous metal futures prices. Meanwhile, inventories of HDG have been at relatively low levels, also bolstering HDG prices. However, ferrous metal futures prices have softened in the past two trading days, which will likely exert a negative impact on the HDG market in the near future.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have increased by RMB 57/mt ($8.0/mt) week on week to RMB 4,450/mt ($627/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 4, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,487/mt ($491/mt), increasing by RMB 40/mt ($5.6/mt) or 1.2 percent since May 28.
$1 = RMB 7.1012
