Ex-China hot dip galvanized (HDG) offer prices have moved sideways in the past week due to the Chinese New Year holiday. Offers are at $770-820/mt FOB for late April shipment this week, moving sideways on average as mainstream steelmakers have not issued their new offer prices for HDG yet.
“Though the long Chinese New Year holiday has ended, downstream manufacturing industries have not resumed production yet, which has exerted a negative impact on demand for HDG, though ex-China HDG prices may edge up in the future,” an international trader said.
Following the long Chinese New Year holiday, HDG prices in the Chinese domestic market have risen amid the sharp increases seen in HRC futures prices at Shanghai Futures Exchange (SHFE). Market players are optimistic as regards the future prospects for the HDG market, though some traders and downstream users have not returned to the market yet, resulting in slack demand in the HDG market.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 83/mt ($13/mt) week on week at RMB 6,093/mt ($946/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 18, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 4,708/mt ($731/mt), increasing by RMB 321/mt ($50/mt) or 7.3 percent since February 4.
$1 = RMB 6.4391
