Ex-China hot dip galvanized (HDG) prices have edged down over the past week following sharp drops in HRC and CRC prices in the Chinese market and the declines in HRC futures prices in China.
Specifically, offers from large mills are heard at around $600-625/mt FOB for December shipment, decreasing by $10/mt on average compared to October 17, though offer prices from smaller mills are heard at $600/mt FOB.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $600-625/mt FOB, versus $610-630/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have continued their downtrend amid the prevailing cautious sentiments among market players. HDG producers’ capacity utilization rates have increased, exerting a negative impact on prices from the supply side. Currently, the inventory of HDG is higher compared to the same period last year, reflecting the slow release of demand. It is thought that HDG prices in the Chinese domestic market will likely decline in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 86/mt ($12.0/mt) compared to October 17, standing at RMB 4,007/mt ($562/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 24, HRC futures at Shanghai Futures Exchange are standing at RMB 3,483/mt ($489/mt), decreasing by RMB 47/mt ($6.6/mt) or 1.4 percent since October 17, while down 0.2 percent compared to the previous trading day, October 23.
$1 = RMB 7.1286