Ex-China HDG offers have edged down slightly during the past week amid the decreasing trend in HRC futures prices and declining HDG prices in the local market.
Specifically, offers from large Chinese mills have been heard at around $590-620/mt FOB for December shipment, compared to $595-625/mt FOB last week, while offer prices from smaller mills have been heard at $590-600/mt FOB, down $5/mt on average week on week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $590-620/mt, versus $595-625/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have seen declines amid increasing inventories. HRC futures prices have decreased, exerting a negative impact on market sentiments. Since bookings for delivery in October have been at relatively low levels, there is little pressure on overall sales, which will bolster HDG prices to a certain degree. Some HDG producers have halted supplies for delivery in November, which will provide some support for prices. It is thought that HDG prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 20/mt ($2.8/mt) compared to October 9, standing at RMB 3,863/mt ($544/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 16, HRC futures at Shanghai Futures Exchange are standing at RMB 3,219/mt ($463/mt), decreasing by RMB 67/mt ($9.4/mt) or 2.0 percent since October 9, while down 0.19 percent compared to the previous trading day, October 15.
$1 = RMB 7.0968
