November 21, 2008

Chinese HDG export offer further increase

It is reported that export offer for hot dipped galvanized coil have been raised again recently due to limited supply and increasing domestic price. The strength is expected to spread into next month.

On Shanghai market, 1.0mm HDG by Anshan steel remains at CNY 7600 per tonne, 0.5mm HDB by private producer at CNY 7880 per tonne down by CNY 20 per tonne.

As already forecast last month, Shanghai price for 1.0mm HDG by Anshan Steel has reached CNY 7600 per tonne. If it could exceed CNY 7600 per tonne, the next target would be CNY 7800 per tonne to CNY 7900 per tonne. Otherwise, there would be downward corrections.

Export offers for 1.0mm HDG Z120, by tier two steel makers are between USD 1140 per tonne to USD 1150 per tonne FOB up by USD 40 per tonne from end May. While that for 0.5mm HDG Z120 is at about 1200 per tonne FOB. While quotation by such tier one steel mills as Wuhan steel goes at USD 1200 per tonne to USD 1210 per tonne FOB for 1.0 HDG Z120 to 140, which compares with USD 1250 per tonne to USD 1260 per tonne FOB for 0.5mm HDG.

Export allocation is said to be a little tight and most steel makes only set aside 15,000 tonnes to 20,000 tonne for exports per month. Traders say that steel mills are not so interested in exports since they could get good profit in domestic market.

(Sourced from MySteel.net)