Ex-China hot dip galvanized (HDG) offer prices have remained stable over the past week as trading has almost stopped due to the holidays in most sales destinations. Offers are at $910-920/mt FOB for March shipment this week, moving sideways week on week on average. The tradable level could be at $910/mt FOB or slightly lower, but no new deals have been heard in the market.
“Ex-China HDG offer prices have moved sideways amid the slack demand in the overseas market due to the Christmas Day holiday and the approaching New Year holiday,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have declined slightly amid decreasing ferrous metal futures prices and the prevailing wait-and-see stance in the market. Meanwhile, demand for HDG has remained slack as the New Year holiday is approaching. Traders have had to reduce prices to bring in cash. It is thought that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have declined by RMB 30/mt ($4.7/mt) week on week to RMB 5,773/mt ($906/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 30, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,411/mt (693/mt), decreasing by RMB 173/mt ($27.2/mt) or 3.8 percent since December 23.
$1 = RMB 6.3674
