Ex-China hot dip galvanized (HDG) prices have moved sideways over the past week mainly amid the uncertainty over the HRC prices in the futures market.
Specifically, offers from large mills are still heard at around $630-640/mt FOB for October shipment, remaining stable on average compared to July 25. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $610-625/mt FOB, moving sideways compared to last week.
During the given week, HDG prices in the Chinese domestic market have moved on a downtrend amid relatively high inventory levels. Meanwhile, demand for HDG has remained slack, causing traders to cut their prices to stimulate transaction activities. Decreases in HRC futures prices have also exerted a negative impact on the HDG market.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 74/mt ($10.4/mt) compared to July 25, standing at RMB 4,233/mt ($594/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 1, HRC futures at Shanghai Futures Exchange are standing at RMB 3,505/mt ($492/mt), decreasing by RMB 13/mt ($1.8/mt) or 0.37 percent since July 25, while up 0.78 percent compared to the previous trading day, July 31.
$1 = RMB 7.1323