Ex-China hot dip galvanized (HDG) offer prices have moved down further over the past week due to the weak local market and the fall in other flat steel product prices. Offers from large mills are at $925-935/mt FOB for late January shipment this week, moving down by $25/mt week on week on average.
“The declining ferrous metal futures prices and decreasing local HDG prices have exerted a negative impact on ex-China HDG,” an international trader said. Moreover, traders and small mills may consider even lower prices - at around $910-915/mt FOB.
During the given week, HDG prices in the Chinese domestic market have moved down amid the prevailing bearish sentiments among market players. Demand for HDG has been slack, and so traders have chosen to sell at lower prices to bring in cash. It is thought that HDG prices in the Chinese domestic market will likely decline in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 153/mt ($24/mt) week on week to RMB 6,140/mt ($962.4/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 18, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,333/mt (679/mt), decreasing by RMB 363/mt ($57/mt) or 7.73 percent since November 11.
$1 = RMB 6.3803