Ex-China hot dip galvanized (HDG) offer prices have mainly moved sideways, but the tradable level has improved owing to the positive sentiments prevailing in the market.
Offers from mills this week are at $830/mt FOB for late May shipment, moving sideways compared to March 2 on average. Reference deal prices for ex-China HDG have been heard at $800/mt FOB, rising by $10/mt compared to last week.
“HRC futures prices have moved up, positively affecting the HDG market, while stimulus policies issued by the Chinese government during the two sessions meetings to boost economic development have also exerted a positive impact on market sentiments,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have edged down slightly amid the slow release of demand from downstream users. However, firm raw material prices have bolstered HDG prices. At the same time, bids for HDG supplies arriving in the market have been improving lately, which will provide solid support for the future market. It is thought that HDG prices in the Chinese domestic market will fluctuate within a limited range in the coming week, with a positive bias.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 3/mt ($0.43/mt) compared to March 2, standing at RMB 4,930/mt ($707/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 9, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,402/mt (632/mt), increasing by RMB 82/mt ($12/mt) or 1.9 percent since March 2.
$1 = RMB 6.9666
