Ex-China hot dip galvanized (HDG) prices have moved down over the past week, following the drop in the local market and in line with the trend seen in the flat steel segment in general.
Specifically, offers from the large Chinese mills are heard at around $625-635/mt FOB for December shipment. The SteelOrbis reference price for ex-China Z120 HDG has settled at $610-635/mt FOB, versus $620-640/mt FOB last week, as offer prices from smaller mills and some bids have been heard near the lower end of the range.
During the given week, HDG prices in the Chinese domestic market have moved down amid the prevailing cautious sentiments among market players. Meanwhile, HRC futures prices declined significantly on October 17 amid the weaker-than-expected supportive measure for the real estate sector, exerting a negative impact on the HDG market. At the same time, demand for HDG from downstream users has not improved as much as market players had expected, negatively affecting the market. HDG prices in the Chinese domestic market will edge down slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 87/mt ($12.2/mt) compared to October 10, standing at RMB 4,093/mt ($575/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 17, HRC futures at Shanghai Futures Exchange are standing at RMB 3,436/mt ($482/mt), decreasing by RMB 142/mt ($32/mt) or 4.0 percent since October 10, while down 4.87 percent compared to the previous trading day, October 16.
$1 = RMB 7.122