During the week ending December 18, Chinese domestic hot dip galvanized (HDG) prices have indicated an overall downtrend, while overall transaction activity is still at poor levels. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, major domestic steelmakers including WISCO and Baosteel have cut their HDG prices for January shipment by RMB 100/mt ($16/mt), exerting a negative impact on HDG prices in the spot market. Meanwhile, demand has remained sluggish. As the end of the year is approaching, most traders are seeking to keep their inventories at low levels. It is expected that HDG prices in the Chinese domestic market will move on a slight downtrend in the coming week.