Ex-China hot dip galvanized (HDG) offer prices from some mills have moved down further over the past week, following price decreases locally, but the overall tradable level is not as low as earlier amid improved sentiment and signs of a trend reversal, at least for the near future.
Offers from major Chinese mills are at $900-910/mt FOB for late January shipment this week, moving down by $15/mt week on week on average. “The declining trend in local HDG prices has exerted a negative impact on ex-China HDG offer prices, while the rebounding trend in ferrous metal futures prices may bolster prices in the near future,” an international trader said.
In the meantime, the tradable level for ex-China HDG, which was at $890-900/mt FOB last week, has been assessed at $900-910/mt FOB now, in line with mills’ offers. Some deals have been seen to the MENA region in this range.
During the given week, HDG prices in the Chinese domestic market have declined amid the slack demand from downstream users. Ferrous metal futures prices have indicated a rebounding trend, which may bolster HDG prices in the near future.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 86/mt ($13.5/mt) week on week to RMB 5,910/mt ($928/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 2, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,703/mt (738.3/mt), increasing by RMB 98/mt ($15.4/mt) or 2.13 percent since November 25.
$1 = RMB 6.3719