Ex-China hot dip galvanized (HDG) offer prices have moved sideways over the past week. Offers from mills are at $1,020-1,030/mt FOB for late September shipment this week, remaining stable week on week on average.
“Rumors said major Chinese steelmaker Baosteel suspended giving offer prices this week for ex-China HDG due to concerns over the possible cancellation of tax rebate as of August 1, resulting in a stable trend in ex-China HDG prices,” an international trader said.
During the given week, the fluctuating trend in HRC futures prices negatively affected market players’ sentiments, dragging down domestic HDG prices in the spot market. The demand for HDG has remained slack, which will exert a negative impact on its prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 7/mt ($1.1/mt) week on week at RMB 6,796/mt ($1,051/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 22, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,947/mt (920/mt), decreasing by RMB 15/mt ($2.3/mt) or 0.25 percent since July 15.
$1 = RMB 6.4651