During the week ending May 23, the Chinese domestic hot dip galvanized (HDG) market has continued to move in a downward direction. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
As HDG domestic market prices are still on the decline, most traders are adopting a cautious approach. In light of the continuous softening in the steel futures market and in the hot rolled and cold rolled markets, as well as the lack of support from end-user demand, traders have been obliged to reduce their offers for buyers. As the weather gets hotter towards the end of May, downstream industries including the auto and white goods industries are expected to reduce consumption of HDG products. As a result, demand is not expected to recover soon.
It is thought that the Chinese domestic HDG market will continue to drop down in the week ahead.