Ex-China hot dip galvanized (HDG) prices have increased this week given that local demand for HDG from downstream users has improved this week and that HRC futures prices in China have moved up.
Specifically, offers from large mills are still heard at around $660-670/mt FOB for May shipment, moving up by $20/mt compared to April 11. Meanwhile, the reference deal prices for ex-China Z120 HDG have been heard at around $655/mt FOB, up $20/mt on average compared to last week.
During the given week, HDG prices in the Chinese domestic market have increased on the back of rising HRC futures prices. Meanwhile, market sentiments have improved, bolstering HDG prices to a certain degree. Demand for HDG from downstream users has improved, exerting a positive impact on prices. However, market players are worried that the release of demand may not continue, which will negatively affect the HDG market in the near future.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 37/mt ($5.2/mt) compared to April 11, standing at RMB 4,700/mt ($662/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 18, HRC futures at Shanghai Futures Exchange are standing at RMB 3,846/mt ($530/mt), increasing by RMB 85/mt ($12/mt) or 2.3 percent since April 11, while up 1.16 percent compared to the previous trading day, April 17.
$1 = RMB 7.1025