Ex-China hot dip galvanized (HDG) offer prices have moved sideways over the past week. Offers from mills are generally at $910-920/mt FOB for late March shipment this week, remaining stable week on week on average. But most sellers agree to sell at $900-910/mt FOB, SteelOrbis has learned, to push volumes overseas.
“Ex-China HDG offer prices have remained unchanged amid the slight fluctuation in the local HDG market, while demand has been slack, affecting prices. Ex-China HDG prices may move sideways ahead of the Chinese New Year holiday,” an international trader said. Some deals to Southeast Asia at prices at slightly below $900/mt FOB have been reported from traders over the past week.
During the given week, HDG prices in the Chinese domestic market have seen slight rises amid the rebounding trend of HRC futures prices. As the Chinese New Year is approaching, demand for HDG has continued to slacken, which has exerted a negative impact on 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 3/mt ($0.47/mt) week on week to RMB 5,773/mt ($908/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 20, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,815/mt (757/mt), increasing by RMB 76/mt ($12/mt) or 1.6 percent since January 13.
$1 = RMB 6.3485