September 08, 2008

Chinese HDG export prices move up a bit in last week

It is reported that export offer for Chinese hot dipped galvanized coil have improved a bit during last week due to rising input cost and pursuit of more profit from exports.

On Shanghai market, 1.0 HDG by Anshan Steel is being quoted at CNY 5580 per tonne to CNY 5600 per tonne, 0.5mm HDG by private producers goes at CNY 5900 per tonne.

As per reports, export offers are mixed from mill to mill as a result of different production cost and quality level. A tier one producer in North East China is exporting 1.0mm HDG with Z140 to Z180 coating at USD 750 per tonne on FOB basis for March shipment. Whereas a Hebei province based tier two steel mills has raised offer to USD 780 per tonne to USD 785 per tonne on FOB basis for 1.0mm HDG in Z120 coating and there is an extra of USD 8 per tonne and USF 23 per tonne for Z140 and Z180 respectively.

As per report, most of the March delivery cargoes are destined for US and Latin America, where a lot of orders have come forth suddenly due to sharp rise in ex work prices by local steel producers and there is strong likelihood that major exports of HDG in coming months would be to these destinations.

As per some market players offers for April shipment could be higher by USD 20 to USD 30 per tonne and, which would be announced in end of January. As per market expectations, almost half of the allocation would be booked before Chinese Spring Festival.