Ex-China hot dip galvanized (HDG) offer prices have edged up further over the past week. Offers are at $1,020-1,030/mt FOB for late September shipment this week, up by $5/mt week on week on average.
“Ex-China HDG prices have seen slight rises amid the firm trend in iron ore prices, rising HRC futures and local HDG prices. Since the production restrictions may bolster the market, the ex-China HDG prices may have more room to edge up further,” an international trader said. The tradable price level for Chinese mills is hardly below $1,000/mt FOB, which makes trading activity in the export market problematic.
During the given week, local HDG prices have seen sharp rises amid the bullish sentiments among market players and increasing trend in ferrous metal futures prices. The production restrictions and PBC’s cutting reserve ratio bolstered HDG prices. However, demand for HDG remained slack in traditional offseason of hot summer. It is thought that HDG prices may edge up in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 263/mt ($40.7/mt) week on week at RMB 6,803/mt ($1,053/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 15, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,962/mt (922.3/mt), increasing by RMB 212/mt ($32.8/mt) or 3.7 percent since July 8.
$1 = RMB 6.464