Ex-China hot dip galvanized (HDG) offer prices have moved on an uptrend in the past week, following an increasing trend in the previous week. Offers are at $680-710/mt FOB, edging up by $7.5/mt on average compared to one week ago amid the supply shortage in the export market, increasing local HDG prices and high levels of iron ore prices.
Deal prices have been heard at $675-680/mt FOB, mostly to South America and Southeast Asia, edging up by $12.5/mt compared to the previous week.
“The tight supply of HDG resources to the export market bolstered ex-China HDG prices, while if the local HDG prices go down, ex-China HDG offer prices will also weaken in the future,” an international trader said.
During the given week, HDG prices in local market have seen rises amid the increasing iron ore prices and high levels of booking costs from steelmakers. However, rainy cold weather in China exerted a negative impact on the sentiments among market players, resulting in slack activities. Currently, the inventory of HDG has been at relatively low level, which still provided certain support to its prices.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 23/mt ($3.5/mt) week on week at RMB 5,203/mt ($791/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 26, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,082/mt ($621/mt), increasing by RMB 4/mt ($0.6/mt) or 0.1 percent since November 19.
$1=RMB 6.578