Ex-China hot dip galvanized (HDG) offer prices have moved up in the past week, following a downtrend in the previous week. Offers are at $550-560/mt FOB for late August delivery this week, up $5/mt compared to one week ago amid the firm trend in local HDG prices and the high levels of raw material prices. At the same time, reference deal prices have been heard at $540-550/mt FOB, to Southeast Asia and South America.
“Steelmakers have increased their export offer prices amid rising raw material prices, while more deals have been heard recently due to the easing of the Covid-19 situation in some overseas markets,” one trader said.
During the given week, following previous rises in HDG local prices, Chinese downstream users have been less willing to purchase HDG. Inventory levels of HDG have decreased, providing support for HDG prices. However, traders have started to hold a wait-and-see view as regards the future prospects for the HDG market. It is thought that HDG prices in the Chinese domestic market will likely move sideways or see downward corrections in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved sideways week on week at RMB 4,450/mt ($630/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 11, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,538/mt ($501/mt), increasing by RMB 51/mt ($7.2/mt) or 1.5 percent since June 4.
$1 = RMB 7.0608