Ex-China hot dip galvanized (HDG) offer prices have remained stable in general over the past week, but the outlook for the post-holiday period is strongly optimistic. Offers have been at $910-920/mt FOB for late March shipment this week, moving sideways week on week on average, but some mills have increased offers to the higher end of the range before leaving the market for the holiday.
The tradable level of ex-China HDG prices has been heard at $900-910/mt FOB, while last week some deals were done at $900/mt FOB or slightly below.
“Ex-China HDG offer prices have moved sideways amid the stable trend in the local market, while demand has been sluggish. Prices will remain unchanged due to the Chinese New Year holiday,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have remained stable as the Chinese New Year holiday is approaching and most traders have left the market for the holiday. The outlook for HDG prices after the holiday is very strong, in line with other flat steel segments in China.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have remained stable week on week, standing at RMB 5,773/mt ($911/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 27, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,795/mt (756.5/mt), decreasing by RMB 20/mt ($3.2/mt) or 0.4 percent since January 20.
$1 = RMB 6.3382
