Ex-China hot dip galvanized (HDG) offer prices have edged down further over the past week, as local prices have fallen sharply and sellers have been trying to attract customers.
Offers from mills are at $950-960/mt FOB for late January shipment this week, moving down by $20/mt week on week on average. “The decreases in ferrous metal futures prices and the declining local HDG prices have weakened the support for ex-China HDG offer prices,” an international trader said. At the same time, Chinese traders have remained aggressive, offering as low as $930/mt FOB, while they are ready to negotiate.
Nevertheless, “local steel prices may see a rebounding trend, following the previous sharp declines, as HRC futures prices have indicated a big rise of 7.98 percent on November 11 compared to the previous trading day,” a source said.
During the given week, China’s domestic HDG prices have seen sharp declines amid the continuous declining trend in ferrous metal futures prices and the prevailing bearish sentiments among market players. Demand for HDG has remained slack, resulting in low activity.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 360/mt ($56/mt) week on week at RMB 6,293/mt ($981/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 11, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,696/mt (732/mt), increasing by RMB 82/mt ($12.8/mt) or 1.8 percent since November 4.
$1 = RMB 6.4145