Ex-China hot dip galvanized (HDG) offer prices have moved up significantly in the past week, following a sharply rising trend in the previous week. Offers are at $835-860/mt FOB for late March shipment this week, edging up by $50-70/mt on average compared to one week ago amid the rising local HDG prices and high levels of HRC and CRC.
The tradable value for ex-China HDG is heard at $815-840/mt FOB, mostly to South America and Southeast Asia, edging up by $50-70/mt compared to the previous week.
“The prevailing bullish sentiments and supply shortage pushed up ex-China HDG offer prices in the given week, while customers in overseas market have mostly been on holiday, thereby most steelmakers in China suspended giving their offer prices for HDG, and they expected that export market may be quiet in January,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have seen sharp rises amid the rising iron ore prices and increasing ferrous metal futures prices. However, downstream users have been cautious in concluding purchases for HDG. At the same time, inventory of HDG has been at relatively low level, bolstering its prices. 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 gained RMB 410/mt ($63/mt) week on week at RMB 6,363/mt ($973.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 24, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,584/mt ($701/mt), increasing by RMB 138/mt ($21/mt) or 3.1 percent since December 17.
$1 = RMB 6.5361