Ex-China hot dip galvanized (HDG) offer prices have moved down over the past week as suppliers have faced sharp drops locally and they have been interested in exports. Offers are at $1,040 -1,060/mt FOB for late January delivery this week, moving down by $10/mt week on week on average. While the tradable level seen in negotiations has been at $1,025-1,035/mt FOB with customers in Latin America.
“The declining ferrous metal futures prices and the downtrend in local HRC prices weakened the support to ex-China HDG offer prices,” an international trader said.
During the given week, HDG prices have seen sharp declines amid the decreasing HRC futures prices and the cautious sentiments among market players. At the same time, demand for HDG has remained slack, exerting a negative impact on its prices. It is thought that HDG prices in the Chinese domestic market will likely edge down in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 133/mt ($20.8/mt) week on week at RMB 6,700/mt ($1,048.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 28, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,063/mt (792/mt), decreasing by RMB 223/mt ($35/mt) or 4.2 percent since October 21.
$1 = RMB 6.3957