During the week ending July 12, the Chinese hot dip galvanized (HDG) market has been trending down amid unsatisfactory market demand. Average prices of HDG in the Chinese domestic market can be viewed in the SteelOrbis price reports section.
Most traders in the Chinese HDG market have been willing to compromise in negotiations as they seek to attract business. Amid lackluster demand, HDG offers have declined across the country. While large traders with a full range of specifications are relatively satisfied with their order books, other traders are experiencing greater difficulties.
The China Iron and Steel Association (CISA) has stated that in late June (June 21-30) the average daily output of crude steel of large and medium-sized domestic steel enterprises totaled 1.65 million mt, down 0.32 percent compared to mid-June. Steel producers in China have been reducing their production slightly in line with sluggish market demand.
It is expected that the Chinese HDG market will continue to soften in the coming seven days.