During the week ending April 16, Chinese domestic hot dip
galvanized (HDG) prices have moved on a stable trend, while transaction activity has remained at low levels.
Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, large traders have come under pressure from their relatively high HDG inventory levels. At present, HDG materials booked previously for delivery in April have been gradually arriving in the market, which will push traders to speed up their sales activities in order to bring in cash. Traders' offer prices for HDG from producers such as Masteel, Shougang and Benxi Iron and Steel will be higher as these products were booked at higher prices, while buyers will likely show greater interest in lower-priced products. This situation will result in sluggish transaction activity for higher-priced HDG materials in the domestic market. Meanwhile, since iron ore futures prices have indicated a rebound, sentiment in the iron ore market has improved, providing a certain degree of support for HDG prices from the cost side. It is expected that HDG prices in the Chinese domestic market will continue their stable trend in the coming week.