Over the past few days, ex-China hot dip galvanized (HDG) offer prices have increased by $140/mt on average to $1,120-1,200/mt FOB for late July delivery.
“The offer prices of ex-China HDG have indicated sharp increases amid the prevailing bullish sentiments, surging ferrous metal futures, increasing local prices and rising iron ore, though market players started to be cautious following quick rises. It is thought ex-China HDG offer prices may eye downward corrections in the coming week, or at least fluctuate within a limited range instead of continuous rises,” an international trader said.
During the given week, local HDG prices in China have seen sharp rises amid the surging ferrous metal futures prices and other flat steel prices. Following quick rises, downstream users have been unwilling to make HDG bookings and mostly have adopted a wait-and-see stance. At the same time, inventory of HDG has been at relatively low level, bolstering its prices to some extent.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 903/mt ($140/mt) week on week at RMB 7,546/mt ($1,168/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 13, HRC futures prices at the Shanghai Future Exchange are standing at RMB 6,438/mt (997/mt), increasing by RMB 503/mt ($78/mt) or 8.5 percent since May 6.
$1 = RMB 6.4612