Ex-China hot dip galvanized (HDG) offer prices have edged up over the past week. Offers from mills this week are at $910-920/mt FOB for late January shipment, moving up by $10/mt week on week on average.
“The rises in local HRC prices in the given week have bolstered ex-China HDG offer prices, while the recent declining trends in futures prices and local prices may weaken the support for export offer prices in the near future,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have edged down slightly amid declining ferrous metal futures prices and the prevailing bearish sentiments as regards the prospects for the local market. The demand for HDG may slacken in the near future, which will exert a negative impact on its prices. It is thought that HDG prices in the Chinese domestic market will likely move sideways or go down in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 34/mt ($5.4/mt) week on week to RMB 5,876/mt ($925/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 9, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,443/mt (699.7/mt), decreasing by RMB 260/mt ($41/mt) or 5.5 percent since December 2.
$1 = RMB 6.3498