Ex-China hot dip galvanized (HDG) prices have remained relatively stable this week, though, according to sources, some offers have kept showing a downward bias given that sentiment has worsened in the local HDG market, coupled with further drops in HRC futures prices.
Specifically, offers from large mills are still heard at around $640-670/mt FOB for May shipment, versus $660-670/mt FOB last week. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $640/mt FOB, the same as last week.
At the same time, during the given week, HDG prices have moved down again following the previous rebound last week. Steelmakers have reduced outputs of HDG, reducing the supply to the spot market, resulting in decreases in HDG inventories, though they remain at relatively high levels. Market players think there is limited space for HDG prices to move down, while they are choosing to sell at lower prices to bring in cash and ease the tightness of liquidity at the end of the month.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 47/mt ($6.6/mt) compared to March 21, standing at RMB 4,603/mt ($648/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 28, HRC futures at Shanghai Futures Exchange are standing at RMB 3,692/mt ($520/mt), decreasing by RMB 135/mt ($19/mt) or 3.5 percent since March 21, while down 1.36 percent compared to the previous trading day, March 27.
$1 = RMB 7.0948