Ex-China HDG offers from large mills have remained stable over the past week, but smaller sellers have become aggressive and managed to conclude some deals at low levels.
Specifically, offers from large Chinese mills stand at $635-640/mt FOB for August shipment, remaining stable compared to June 18, but smaller mills and traders may agree on $600-605/mt FOB for 1 mm Z120 material.
In particular, a deal for Chinese Z40 has been heard to Pakistan at $590/mt CFR, this means that for Z120 HDG the price is around $600-603/mt FOB, according to sources.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $600-635/mt FOB.
During the given week, HDG prices in the Chinese domestic market have edged down slightly amid declining HRC futures prices. Cautious sentiments have prevailed among market players and so buyers have been unwilling to conclude purchases of HDG. Currently, the traditional off-season results in quiet transaction activities. The poor performance of the HDG market has negatively affected prices. Following a brief respite from the rain lasting a few days, another round of heavy downpours is on the way, which will exert a negative impact on the HDG market. It is thought that HDG prices in the Chinese domestic market will soften in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 10/mt ($1.5/mt) compared to June 18, standing at RMB 4,030/mt ($591/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 25, HRC futures at Shanghai Futures Exchange are standing at RMB 3,312/mt ($486/mt), decreasing by RMB 37/mt ($5.4/mt) or 1.1 percent since June 18, while down 0.45 percent compared to the previous trading day, June 24.
$1 = RMB 6.8209
