Ex-China hot dip galvanized (HDG) offer prices have remained stable over the past week. Offers from mills this week have been at $910-920/mt FOB for late March shipment, moving sideways week on week on average. Market sources have reported deals in this range.
“Ex-China HDG offer prices have moved sideways amid the stable movement in the local HDG market, while sluggish local demand still affects offer prices. Market players have expected downstream users to make purchases ahead of the Chinese New Year holiday, which may bolster ex-China HDG offer prices in the coming period,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have risen slightly amid increasing ferrous metal futures prices. The demand for HDG has remained slack, while market participants may build up stocks in the near future. It is thought that HDG prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 4/mt ($0.63/mt) week on week at RMB 5,770/mt ($908/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 13, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,739/mt (746/mt), increasing by RMB 101/mt ($16/mt) or 2.2 percent since January 6.
$1 = RMB 6.3542