Ex-China hot dip galvanized (HDG) offer prices have increased slightly over the past week, though overall sentiments are still not very promising. Offers from Chinese mills are at $1,050-1,070/mt FOB for late December shipment this week, moving up by $10/mt week on week on average.
“The rising trend of local HDG prices and the production restrictions have bolstered ex-China HDG offer prices,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved up sharply amid the production restrictions and power supply limits ahead of the long National Day holiday. However, demand for HDG has not seen significant improvement, which will exert a negative impact on prices. As a result, it is thought that HDG prices will not rise further in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 140/mt ($21.7/mt) week on week at RMB 6,936/mt ($1,077/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 14, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,666/mt (880/mt), decreasing by RMB 147/mt ($23/mt) or 2.53 percent since October 8.
$1 = RMB 6.4414