September 07, 2008

Chinese HDG export volume in October dips

It is reported that hot dipped Galvanized coil exports in China have been going down since August and it is quiet evident for October 2007 shipments. This trend is anticipated to spread into the end of the year due to weak overseas market price and possible anti dumping by EU.

Customs statistics show that HDG export volume for both coil and strip in October is 270,000 metric tonnes down by 172,400 metric tonnes or 38.96%MoM from August 2007.

Shanghai based trader said that "HDG exports are becoming more and more difficult since European market is heavily depressed now and there is no sign of improvement yet. In addition, the risk of anti-dumping by EU would further choke exports."

Export offers have seen small improvements in the past two weeks but transactions are quiet thin. Quotations for 1.0mm HDG is prevailing at USD 690 per tonne FOB to USD 700 per tonne FOB.

Domestic HDG prices are still lagging behind despite substantial rise in HRC prices. However it is expected to go up little by little since CRC prices have seen evident increase. On Shanghai market, 1.0mm HDG by Anshan steel is being offered at CNY 5070 per tonne to CNY 5100 per tonne, 0.5mm by private producers remain at CNY 5500 per tonne.

If price for 1.0mm HDG by Anshan could go past CNY 5200 per tonne, the next aim will be CNY 5400 per tonne. Otherwise it still would choose to fluctuate between CNY 5000 per tonne and CNY 5200 per tonne, while CNY 5000 per tonne is just the critical price level.

(Sourced from MySteel.net)