Ex-China hot dip galvanized (HDG) offer prices have moved up in the past week, following a rising trend in the previous week. Offers are at $640-650/mt FOB this week, edging up by $2.5/mt on average compared to one week ago amid the firm trend in the local market, higher CRC prices and still strong Chinese currency. The deal prices have been heard at $635-640/mt FOB, moving up by $7.5/mt on average compared to the previous week. The appreciation of the Chinese currency bolstered ex-China HDG offer prices.
“The appreciation of Chinese currency bolstered ex-China HDG offer prices, while market players expected for further rises,” an international trader said.
During the given week, inventory of HDG has not seen big changes, providing certain support to HDG prices. However, demand for HDG in the domestic market has remained slack, though rising futures prices exerted a positive impact on the HDG market.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 16/mt ($2.4/mt) week on week to RMB 4,906/mt ($729/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 29, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,842/mt ($571/mt), increasing by RMB 32/mt ($4.8/mt) or 0.84 percent since October 22.
$1 = RMB 6.7296