Chinese HDG export prices likely to go up further

It is reported that hot dipped galvanized coil price is still creeping up in China. On Shanghai market, 1.0mm HDG by Anshan steel is being quoted at CNY 7650 per tonne, 0.5mm material by private steel mills is quoted at CNY 7950 per tonne up by CNY 50 per tone from last week.

As already forecast last month, Shanghai price for 1.0mm HDG by Anshan Steel has reached CNY 7600 per tonne. As long as Shanghai price for 1.0mm HDG remain above CNY 7500 per tonne ton the next target would be CNY 7800 per tonne to CNY 7900 per tonne.

Export offers remain at high level and the range is between USD 1100 per tonne and USD 1160 per tonne FOB for 1.0mm HDG Z120. Quotation for 0.5mm HDG Z120 is at about CNY 1200 per tonne to CNY 1260 per tonne FOB.

A tier two steel maker in North East China has raised its quotation for 1.0 HDG to USD 1360 per tonne CFR for shipments to eastern coast of the United States of America and the equivalent FOB price is about USD 1260 per tonne FOB.

An East China based trader said price is really high and it is mainly due to tight supply. The steel producer probably has no enough allocation for exports and it shot up offer substantially to scare away buyers.

Chinese HDG price is expected to remain strong in June as a result of a combination of robust domestic and international demand and short production.