Ex-China hot dip galvanized (HDG) prices have edged down over the past week following decreases in HRC futures prices as well as declines in export prices for HRC and CRC from Chinese mills this week.
Specifically, offers from large mills are heard at around $620-625/mt FOB for October shipment, decreasing by $5/mt compared to last week, though offer prices from smaller mills are heard at $570-580/mt FOB, down by $5/mt week on week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG has settled at $570-625/mt FOB, versus $575-630/mt FOB last week.
During the given week, HDG prices in the Chinese domestic market have moved on a downtrend amid the high temperatures in western China where some downstream users have been on holiday due to the hot weather. Besides, there were limited transaction activities observed amid the prevailing bearish sentiments among market players. Following the continuous declines in HDG prices, market players expect some improvements HDG prices in the near future.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 37/mt ($5.2/mt) compared to August 29, standing at RMB 3,873/mt ($545.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 5, HRC futures at Shanghai Futures Exchange are standing at RMB 3,126/mt ($440/mt), decreasing by RMB 185/mt ($26.0/mt) or 5.6 percent since August 29, while down 2.16 percent compared to the previous trading day, September 4.
$1 = RMB 7.0989