Ex-China hot dip galvanized (HDG) offer prices have edged down further over the past week. Offers from large mills are at $910-930/mt FOB for late January shipment this week, moving down by $10/mt week on week on average.
“The decreasing local HDG prices have negatively affected ex-China HDG offer prices, while prices may bottom up in the near future amid the rebounding trend of ferrous metal futures prices and iron ore prices,” an international trader said.
Smaller HDG mills and traders have been ready to sell the benchmark Z120 HDG at $900/mt FOB and some negotiations have been heard at $890-900/mt FOB, down from $910-915/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have indicated an overall downtrend amid the slack demand from downstream users. However, HRC futures prices have seen a rebounding trend, which will exert a positive impact on HDG prices. It is thought that HDG prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 144/mt ($22.5/mt) week on week to RMB 5,996/mt ($937/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 25, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,605/mt (719.5/mt), increasing by RMB 272/mt ($57/mt) or 6.3 percent since November 18.
$1 = RMB 6.398