It is reported that hot dipped galvanized coil price are still going up in China. On Shanghai market, 1.0mm HDG by Anshan steel is being quoted at CNY 7150 per tonne; 0.5mm material by private steel mills at CNY 7280 per tonne up by CNY 250 per tonne and CNY 30 per tonne respectively.

Mysteel forecasts as already forecast in early March, Shanghai price for 1.0mm HDG by Anshan Steel has been quite close to our target of CNY 7200 per tonne. As long as Shanghai price for 1.0mm HDG remain above CNY 6800 per tonne the next target would be CNY 7200 per tonne to CNY 7300 per tonne.

Export offers are still mixed. The range is from USD 1000 per tonne to USD 1150 per tonne FOB for 1.0mm HDG. A tier two steel maker in north China tells Mysteel that it is exporting DX51D/SGCC 1.0mm HDG at about USD 1070 per tonne June production and July shipment. There is an extra of USD 65 per tonne and USD 100 per tonne for 0.55mm to 0.59mm and 0.5mm to 0.54mm material respectively.

Steel mill in North East China is offering DX51D/SGCC 1.0mm HDG at around USD 1130 per tonne to USD 1150 per tonne FOB as base. By comparison, a Tangshan based steel mill is only quoting at USD 995 per tonne FOB for the same product.

Chinese HDG price is expected to remain strong in May and export tonnage for May shipment would see further rise.

(Sourced from MySteel.net)