Ex-China hot dip galvanized (HDG) offer prices have moved sideways in the past week, following a sharply declining trend in the previous week. Offers are at $770-820/mt FOB for late April delivery this week, moving sideways on average, though the range is wider by $10/mt compared to last week. Some mills have been considering lower prices amid the sluggish demand in the local market.
“The quiet activities in the Chinese domestic HDG market ahead of the Chinese New Year holiday (February 11-17) exerted a negative impact on ex-China HDG offer prices, resulting in a wider offer price range, though overseas buyers had basically completed their purchases in the previous two weeks,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have been almost stable, while demand has been sluggish as most downstream users have left for the holiday. Traders have been unwilling to adjust their prices amid the quiet activity. It is expected that HDG prices in the Chinese domestic market will remain stable in the coming two weeks.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 3/mt ($0.46/mt) week on week at RMB 6,013/mt ($931/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 4, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 4,387/mt ($679/mt), decreasing by RMB 36/mt ($5.6/mt) or 0.8 percent since January 28.
$1 = RMB 6.4605