Ex-China hot dip galvanized (HDG) offer prices have softened over the past week. Offers from large mills are at $1,015-1,025/mt FOB for late May shipment this week, down by $15/mt on average compared to March 10. The tradable level has remained $10-15/mt below the $1,000/mt FOB mark.
“Following big declines in HRC futures prices, traders and HDG producers have cut their export offer prices, and the spread of the Covid-19 pandemic has also affected market players’ sentiments, though the hike in the US interest rate may push up Chinese export prices in the near future,” an international trader said.
HDG prices in the Chinese domestic market moved down in the first part of the given week, while edging up slightly in the latter part amid the rebounding trend of ferrous metal futures prices. It is thought that HDG prices in the Chinese domestic market will rise slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved down by RMB 37/mt ($5.8/mt) compared to March 10 to RMB 5,830/mt ($919.6/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 17, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,054/mt (797/mt), decreasing by RMB 53/mt ($8.4/mt) or 1.04 percent since March 10.
$1 = RMB 6.3406
