Due to the firm trend in the Chinese domestic hot dip galvanized (HDG) market and the rising trend in hot rolled coil (HRC) export offer prices amid the appreciation of the Chinese currency, ex-China HDG offer prices are currently at $595-600/mt FOB, up $5/mt on average over the past week. At the same time, deals have been done at $590-595/mt FOB to the Middle East and Southeast Asia, supporting overall sentiments in the market.
During the given week, most market players have been waiting for the Chinese New Year holiday and are preparing to leave the market by the end of this week, resulting in the stable trend of the market. Average 1.0 mm SGCC hot dip galvanized spot prices in China have remained stable week on week to RMB 4,730/mt ($687.4/mt) ex-warehouse, according to SteelOrbis’ information.
Liaoning Province-based major Chinese steelmaker Anshan Iron and Steel has raised its ex-works prices for HDG by RMB 50/mt ($7.3/mt) for delivery in February, thus boosting market sentiment.
As of January 16, HRC futures at the Shanghai Future Exchange are standing at RMB 3,591/mt ($515.8/mt), increasing by RMB 6/mt ($0.9/mt) or 0.2 percent since January 9.
$1 = RMB 6.881