Ex-China hot dip galvanized (HDG) offer prices have moved up over the past week, though no actual deals have been heard following the cancellation of the export tax rebate as of August 1. Offers from Chinese mills are at $1,150-1,180/mt FOB for late October shipment this week, moving up by $140/mt week on week on average.
“Steelmakers and traders have raised offer prices for ex-China HDG, while no actual deals have been heard yet,” an international trader said. Moreover, trading has been hit by uncertainties over possible introduction of export duty not only on GRC, but on CRC and HDG too by the end of the month.
During the given week, China’s domestic HDG prices have risen slightly amid the fluctuating trend in HRC futures prices. At the same time, demand for HDG has remained slack, resulting in low-and-medium transaction activities.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 7/mt ($1.1/mt) week on week to RMB 6,840/mt ($1,056/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 12, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,777/mt (892/mt), increasing by RMB 44/mt ($6.8/mt) or 0.77 percent since August 5.
$1 = RMB 6.4754