Ex-China hot dip galvanized (HDG) offer prices have remained stable over the past week. Offers from large mills are at $1,015-1,025/mt FOB for late May shipment this week, moving sideways compared to March 24 on average. The tradable level is $980-1,000/mt FOB, increasing by $15/mt over the past week.
“The ups and downs in HRC futures prices have affected HDG prices, while market players hold a positive view of the prospect for the future market, which will likely bolster the HDG market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have edged up amid increasing raw material prices and with transportation restrictions reducing supplies, which have provided support for the market. However, market players still expect a better performance in the near future as it enters the traditional peak season for the steel market. It is expected that HDG prices in the Chinese domestic market will likely move up in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have risen by RMB 93/mt ($14.6/mt) compared to March 24 to RMB 5,983/mt ($942/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 31, HRC futures prices at the Shanghai Future Exchange are standing at RMB 5,218/mt (822/mt), rising by RMB 45/mt ($7.1/mt) or 0.87 percent since March 24.
$1 = RMB 6.3482
