During the week ending January 22, Chinese domestic hot dip galvanized (HDG) prices have indicated an overall downtrend, while transaction activity is still at poor levels.
During the given week, local HDG prices have continued their downtrend, while market participants are cautious as regards the future prospects for the market. Sluggish demand and a lack of confidence have been the main factors contributing to the declining trend. Furthermore, on January 21 Shougang reduced its HDG ex-works prices for February delivery by RMB 80/mt ($13/mt), negatively impacting the spot market. It is expected that HDG prices in the Chinese domestic market will continue their downtrend in the coming week.