Ex-China hot dip galvanized (HDG) offer prices have moved sideways in the past week, following the uptrend in the previous week. Offers are at $550-560/mt FOB for late August delivery this week, moving sideways compared to one week ago amid the slightly rising trend in local HDG prices and firm raw material prices. At the same time, deal prices have been heard at $550/mt FOB for small volumes to South America.
“Demand from overseas buyers has not improved significantly, while the performance in the local HDG market has been much better than in the export market. Accordingly, HDG exports will likely remain quiet in the coming period,” one trader said.
During the given week, major Chinese steelmaker Baosteel raised its local base prices for hot dip galvanized (HDG) by RMB 260/mt ($36.8/mt), bolstering local HDG prices in the spot market. At the same time, there has been some tightness in supply of HDG, which provided support for HDG prices. It is expected that HDG prices in the Chinese domestic market will move sideways in the coming period.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have edged up by RMB 10/mt ($1.4/mt) week on week at RMB 4,460/mt ($629/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 18, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,620/mt ($510.6/mt), increasing by RMB 82/mt ($11.6/mt) or 2.3 percent since June 11.
$1 = RMB 7.0903
