Ex-China hot dip galvanized (HDG) coil offers have slipped this week, giving up part of last week’s gains given the sluggish demand from downstream users and rising inventories, coupled with drops in HRC futures prices in China.
Specifically, offers from large Chinese mills have been heard at around $600-620/mt FOB for September shipment, compared to $615-630/mt FOB last week, while offer prices from smaller mills have been heard at $595-615/mt FOB, moving down by $10/mt on the lower end of the range week on week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $595-620/mt, versus $605-630/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have edged down amid declining HRC futures prices. Currently, since the traditional off-season is continuing, the demand for HDG has been slack, resulting in increasing inventory levels, which exert a negative impact on prices. It is expected that HDG prices in the Chinese domestic market will see further decreases in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have decreased by RMB 10/mt ($1.4/mt) compared to August 14, standing at RMB 3,867/mt ($542/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 21, HRC futures at Shanghai Futures Exchange are standing at RMB 3,375/mt ($473/mt), decreasing by RMB 57/mt ($8.0/mt) or 1.7 percent since August 14, while down 0.44 percent compared to the previous trading day, August 20.
$1 = RMB 7.1287
