Ex-China hot dip galvanized (HDG) offer prices have moved sideways over the past week, but the tradable level has slipped once again as sentiment has been still bearish in both local and export markets. Offers from mills are at $920-940/mt FOB for late June shipment this week, remaining stable compared to May 12 on average. Reference deal prices of ex-China HDG have been heard at $910/mt FOB as the highest, down $10-20/mt week on week.
“HRC futures prices have moved on a downtrend over the past week, negatively affecting the HDG market, while the supply shortage bolstered the prices to some extent,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have moved sideways amid the declining inventory level and the tight supplies of resources, though overall sentiments have not improved yet. Most market players expected easing of the controlling measures against the Covid-19 pandemic in Shanghai and the surrounding regions, which will exert a positive impact on HDG market in the near future. It is thought that HDG prices in the Chinese domestic market are likely to edge up or remain stable in the coming week if demand improves gradually.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have moved sideways compared to May 12, still standing at RMB 6,080/mt ($901/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 19, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,715/mt (699/mt), decreasing by RMB 15/mt ($2.2/mt) or 0.32 percent since May 12.
$1 = RMB 6.7524
