Ex-China hot dip galvanized (HDG) offers have been heard in a wide range of $560-585/mt FOB, while most mills’ prices are at $575/mt FOB, down by $2.5/mt on average over the past week. Though some producers have made attempts to increase prices, deals prices are still at a much lower level.
Some latest contracts have been heard at $560-570/mt FOB, while sources reported that some tonnages were traded at $555-560/mt FOB a week earlier. Traders said the feedback they got from customers abroad was not optimistic at all, resulting in chaos in the market.
During the given week, downstream users in China have gradually returned to the market and resumed their production, resulting in some transaction activities in the local HDG market. However, inventories have been at relatively high levels amid the ongoing disruption of transportation, exerting a negative impact on HDG prices. Meanwhile, outbreaks of the coronavirus have been seen in more and more countries, which will negatively affect Chinese HDG exports.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have declined by RMB 10/mt ($1.4/mt) week on week to RMB 4,566/mt ($650.3/mt) ex-warehouse, according to SteelOrbis’ information.
$1 = RMB 7.0215
