Ex-China HDG prices remain high, poor activity amid rebate cut uncertainty

Thursday, 25 March 2021 15:04:39 (GMT+3)   |   Shanghai
       

Ex-China hot dip galvanized (HDG) offer prices have moved sideways in the past week after increasing in the previous week, with most suppliers unwilling to give firm offers, awaiting the final decision on the anticipated export tax rebate cut. Offers from Chinese mills are at $850-880/mt FOB for late May shipment this week, moving sideways on average week on week.

The reference deal prices have also remained unchanged week on week at $840-860/mt FOB. “Rare offers of ex-China HDG have been available in the market as most suppliers are out of the export market, awaiting the final announcement of the anticipated export tax rebate cut. Market players think the prices may fluctuate within a limited range before the policy is clarified,” an international trader said.

During the given week, HRC futures prices in China have moved on an overall rising trend, bolstering local HDG prices. However, downstream buyers have been cautious as regards purchases at the current high levels. Inventory of HDG has been at relatively low levels, exerting a positive impact on prices.

Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 30/mt ($4.6/mt) week on week to RMB 6,196/mt ($950/mt) ex-warehouse, according to SteelOrbis’ information.

As of March 25, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 5,130/mt ($787/mt), increasing by RMB 25/mt ($3.8/mt) or 0.5 percent since March 18.

$1 = RMB 6.5282


Similar articles

US flats source believe HRC prices are “at or near the bottom”

22 Mar | Flats and Slab

Romania’s sole flats mill cuts HRC prices, raises HDG and PPGI prices

22 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 12, 2024

21 Mar | Flats and Slab

US HRC prices still ticking downward, prices expected to bottom this month

15 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 11, 2024

14 Mar | Flats and Slab

Baosteel keeps local HRC prices stable for April

12 Mar | Flats and Slab

US flats mills take primes down $60-$70/gt, announce HRC price increase

08 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 10, 2024

07 Mar | Flats and Slab

Vietnam’s Hoa Phat post 19% drop in steel sales volume in Feb from Jan

06 Mar | Steel News

US HRC, CRC and HDG coil prices maintain their downtrend

01 Mar | Flats and Slab