Ex-China hot dip galvanized (HDG) offer prices have remained stable at fairly high levels for most buyers over the past week, while deals are still absent. Offers are at $1,150-1,180/mt FOB for late October shipment this week, remaining stable week on week.
“The sluggish demand in the export market has made buyers unwilling to conclude purchases of ex-China HDG,” an international trader said. Moreover, there have been even more competitive offers from other countries, India in particular. But even if some mills cut prices, the situation will not change much as market players are waiting for the decision of the Chinese government regarding the new export duty, which is expected to be announced from early September.
During the given week, China’s domestic HDG prices have risen slightly amid increasing HRC futures prices, while demand from downstream users has remained slack in the offseason, and this situation may continue in the short term. It is expected that HDG prices in the Chinese domestic market will likely move sideways in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 7/mt ($1.1/mt) week on week to RMB 6,820/mt ($1,054/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 26, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,402/mt (835/mt), increasing by RMB13/mt ($2.0/mt) or 0.24 percent since August 19.
$1 = RMB 6.473