This week ex-China hot dip galvanized (HDG) coils offers have remained unchanged following stable prices for HDG in China, though sentiment has improved slightly given slight increases in futures HRC prices.
Specifically, offers from large Chinese mills have been heard at around $595-620/mt FOB for November shipment, the same as last week, while offer prices from smaller mills have remained at $585-595/mt FOB.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $585-620/mt, moving sideways week on week.
During the given week, HDG prices in the Chinese domestic market have remained stable, with average 1.0 mm SGCC hot dip galvanized spot prices in China standing at RMB 3,853/mt ($543/mt) ex-warehouse, according to SteelOrbis’ information.
Besides, major Chinese steelmaker Baosteel has decided to keep its local base prices stable for HDG for delivery in October, bolstering the prices in spot market. However, demand for HDG from downstream users hasn’t seen significant improvement, exerting a negative impact on market sentiments. Since inventories of HDG have gradually increased in August, most market players chose to sell at lower prices, aiming to decrease the inventories, resulting in their cautiousness in raising the prices. September is the traditional peak season, thereby some traders attempted to increase the HDG prices over the past few days.
As of September 11, HRC futures at Shanghai Futures Exchange are standing at RMB 3,334/mt ($467/mt), increasing by RMB 21/mt ($3/mt) or 0.6 percent since September 4, while down 0.03 percent compared to the previous trading day, September 10.
$1 = RMB 7.1034