Ex-China hot dip galvanized (HDG) offer prices have moved down over the past week as suppliers have been trying to attract foreign customers, seeing a further slowdown of demand and prices locally.
Offers from Chinese mills are at $805-810/mt FOB for late September shipment this week, decreasing by $17.5/mt compared to July 7 on average. Reference deal prices of ex-China HDG have been heard at $790/mt FOB, down $10/mt compared to last week. Also, negotiations have been reported at $780/mt FOB from traders.
“Ex-China HDG offer prices have seen decreases over the past week amid the declining trends in local HDG and ferrous metal futures prices,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved down amid the decreasing HRC futures prices and the prevailing bearish sentiments. Transaction activities have slowed down, exerting a negative impact on the HDG market. Currently, the oversupply in the HDG market will negatively affect the prospects for the future market. It is thought that HDG prices in the Chinese domestic market will continue to edge down in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 117/mt ($17.4/mt) compared to July 7, standing at RMB 5,376/mt ($799/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 14, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,792/mt (563/mt), decreasing by RMB 410/mt ($61/mt) or 9.76 percent since July 7.
$1 = RMB 6.7265