During the week ending November 27, Chinese domestic hot dip galvanized (HDG) prices have indicated a slight downward movement, while overall transaction activity is still at low levels. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, the main state-owned steelmakers in China have cut their domestic offer prices for HDG materials, exerting a negative impact on prices in the domestic HDG spot market. As the main state-owned steelmakers had not given attractive prices for HDG to their distributors, the distributors had reduced their booking volumes, resulting in higher inventories on the steelmakers' side and obliging the steelmakers to reduce their prices. Over the past week, a further gradual weakening of demand for HDG has been seen in the local market. It is expected that HDG prices in the Chinese domestic market will continue their downtrend in the coming seven days.