China’s HDG export prices rise on costlier HRC, supply tightness

China’s hot-dipped galvanized coil export market strengthened this week on tight supply and higher domestic hot rolled coil prices.

China’s hot-dipped galvanized coil export market strengthened this week on tight supply and higher domestic hot rolled coil prices.

Base transaction prices for HDG were at $645-665 per tonne fob for October shipment on August 7, up $25-30 per tonne from a week ago.

Base offers for the product also rose to $670-680 per tonne fob, from $645-650 per tonne a week ago.

“HRC prices are higher, so we followed the trend and raised our prices,” an exporter at a mill in Jiangsu province said.

The mill stopped issuing offers last week while it waited for Shagang’s HRC list prices, he said.

East China-based Shagang raised its HRC list prices by 170 yuan ($28) per tonne on August 1.

Supply tightness was also widely reported in the market.

“We are carrying out maintenance works on our HRC production lines, so our supply of HDG will be tighter,” an exporter for a major north China-based mill told Steel First.

Strict inspections by environmental authorities in north China also forced many mills to reduce output, market participants said.

Traders’ inventory is also at a low since mills are controlling their deliveries to the market, which supports prices but slows down trading activity, a Shanghai-based trader said.

Spot prices for 1mm HDG in Shanghai were at 4,470-4,630 yuan ($724-750) per tonne on Wednesday, unchanged for the week.

editorial@steelfirst.com

What to read next
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
Electrolysis processes developed by Boston Metal and Electra that eliminate the need for coal in steel production could be key to a net-zero emissions future for the metallics industry, attendees learned at Fastmarkets’ conference on January 17-19 in Dallas
Low supply, strong demand to spur scrap prices higher in Feb, market says
US deep-sea ferrous export prices from the East Coast to Turkey have plateaued, with a Turkish mill purchasing a cargo at prices stable from the last-reported sale
The current shortage of some higher purity grades of aluminium, such as P0610, and the robust demand for units should maintain the higher differential to prices for P1020-grade aluminium, market sources told Fastmarkets on Monday January 30
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed