Ex-China hot dip galvanized (HDG) offer prices have moved up in the past week, following a rising trend in the previous week. Offers are at $640-665/mt FOB for late January shipment this week, edging up by $7.5/mt on average compared to one week ago amid the rising trend in the local market.
Deal prices have been heard at $630-640/mt FOB to South America, almost stable compared to last week, with only the lower end of the range declining by $5/mt compared to the previous week. The rises in local HDG prices have been bigger than the increases in export prices, resulting in steelmakers’ lack of interest in exports. “Since the Chinese currency has faced big fluctuations amid the uncertainties in the international political situation, steelmakers have been unwilling to export, but focused on local trade,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have indicated big rises amid tight supply. Meanwhile, inventory of HDG has been at relatively low levels, which has also bolstered prices. Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 64/mt ($9.6/mt) week on week to RMB 4,970/mt ($743/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 5, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 3,903/mt ($583.5/mt), increasing by RMB 63/mt ($9.4/mt) or 1.64 percent since October 29.
$1 = RMB 6.6895