During the week ending May 16, hot dip galvanized (HDG) prices in the Chinese domestic market have continued their downward trend amid sluggish demand and weak transaction activity. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
According to data issued by China's National Bureau of Statistics, Chinese HDG output in April this year amounted to 3.641 million mt, down 0.8 percent month on month but up 12.1 percent year on year, while the HDG output for the January-April period totaled 13.349 million mt. Accordingly, the Chinese domestic HDG market continues to face strong pressure from the supply side.
Moreover, Chinese motor vehicle output indicated a decline in April, resulting in less support for HDG consumption. At present, traders are not so optimistic on the prospects for the market in the coming period.
After Baosteel and WISCO lowered most of their flat steel prices for June delivery and offered discounts to traders on HDG prices, other major steelmakers in the domestic market may cut their HDG offer prices. Traders are currently very cautious as regards building up or replenishing their inventories.
As for the week ahead, it is thought that the Chinese domestic HDG market will likely continue its soft trend.