Ex-China hot dip galvanized (HDG) offer prices have moved down over the past week. Offers from large mills are at $980-1000/mt FOB for late August shipment this week, moving down by $20/mt on average.
“Ex-China HDG prices have moved down amid slack demand from both local and overseas markets. The demand [locally] will likely slacken in the near future due to the environmental protection measures,” an international trader said, adding that the latest deals have been heard at $955/mt FOB, but this price level could be achieved only from private HDG producers.
During the given week, domestic HDG prices in China have indicated big declines amid the downtrend of ferrous metal futures prices and the prevailing bearish sentiments among market players. Currently, demand for HDG has been slack, while downstream users have mostly held a wait-and-see stance as regards the future market prospects. It is thought that HDG prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 127/mt ($19.6/mt) week on week to RMB 6,523/mt ($1,006.3/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 24, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,160/mt (796/mt), decreasing by RMB 211/mt ($32.5/mt) or 3.93 percent since June 17.
$1 = RMB 6.4824