Ex-China HDG offers up, but workable level stable as sales may be hit by AD duty in Thailand

Thursday, 30 July 2020 13:52:24 (GMT+3)   |   Shanghai

Ex-China hot dip galvanized (HDG) offer prices have moved up in the past week, following an increasing trend in the previous week. Offers are at $580-590/mt FOB for late October shipment this week, up $7.5/mt on average compared to one week ago amid the limited supplies for export and high levels of iron ore prices. At the same time, deal prices have been heard at $570-575/mt FOB to South America and Southeast Asia, moving sideways compared to the previous week.

“On Thursday, Thailand announced the imposition of 35.67 percent antidumping duty on cold rolled base HDG from China, resulting in buyers in Thailand looking for supplies in Vietnam, while sentiments of market players in China have not been negatively affected yet due to the limited supply for export and good expectation for the prospects for demand in so-called golden September and silver October,” a trader told SteelOrbis.

During the given week, demand for HDG has been slack, exerting a negative impact on prices in the spot market. Downstream users have started to be cautious as regards the future HDG market prospects, though low levels of inventory provide some support for HDG prices. It is expected 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 edged down by RMB 3/mt ($0.43/mt) week on week at RMB 4,630/mt ($662.4/mt) ex-warehouse, according to SteelOrbis’ information.

As of July 23, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,819/mt ($546.4/mt), decreasing by RMB 21/mt ($3/mt) or 0.5 percent since July 23. 

$1 = RMB 6.9902

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