September 06, 2008

Chinese HDG export offers on rebound

It is reported that hot dipped galvanized coil prices have started to rebound in Chinese market. The rebound attributed to the rise in prices of HRC and CRC.

In Shanghai, 1mm thick HDG by Benxi steel has gone up to CNY 4950 per tonne to CNY 4970 per tonne, an increase of CNY 150 per tonne from year low of CNY 4800 per tonne. If 1mm thick HDG could go past CNY 5030 per tonne, it may be able to reach CNY 5200 per tonne in the near future, else it would drop again.

This is also the case with export prices. Now a North East China based major steel maker told Mysteel that it has raised quotation for 1mm thick HDG to USD700 per tonne on FOB basis up by USD 20 per tonne from USD 680 per tonne on FOB basis in early this month. However the transaction prices are believed to be USD 10 to USD lower than the quotations. As per report, despite the earlier quotation of USD 680 per tonne, the contract price for 1mm HDG in Z120 by the above mentioned steel mill was only at USD 660 per tonne as long as the quantity is more than 3000 tonnes.

Another steel maker in North China is now offering 1mm HDG in Z120 at USD 670 per tonne to USD 680 per tonne on FOB basis as compared with USD 650 to USD 660 in the past weeks. Last transaction price heard for 1mm HDG in Z275 to Europe was at USD 805 per tonne on CNF basis.

(Sourced from MySteel.net)