Ex-China hot dip galvanized (HDG) offer prices have moved down amid the decreasing trend in local HDG prices and pressure from slack demand.
Offers from mills this week are at $740/mt FOB for late November shipment, edging down by $10/mt compared to September 15 on average. However, this level has been totally out of the range of interest of buyers, so to conclude deals suppliers have to cut prices. For instance, some deals to Southeast Asia for Z80 HDG have been reported at $670-680/mt FOB, which corresponds to $695-700/mt FOB for benchmark Z120 coils. In this context, the reference deal prices for ex-China HDG have fallen by $15/mt over the week to $695-705/mt FOB.
“HRC futures prices moved down first in the past week while indicating a big rise of 3.03 percent on September 22, affecting the HDG market, while sluggish demand has still exerted a negative impact on HDG prices,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have edged down amid decreases in HRC futures prices during most of the given week, though the futures prices rose by 3.03 percent on September 22. Currently, downstream buyers are mostly holding a wait-and-see stance towards the prospects for the future HDG market as the National Day holiday is approaching. It is expected that HDG prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 40/mt ($5.7/mt) compared to September 15 to RMB 4,660/mt ($668/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 22, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,809/mt (546/mt), rising by RMB 31/mt ($4.4/mt) or 0.82 percent since September 15.