During the week ending August 28, Chinese domestic hot dip galvanized (HDG) prices have indicated a slight downward movement, while transaction activity has remained at low levels. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, bearish sentiment has still prevailed in the domestic HDG market, while downstream users have been unwilling to purchase. Near the end of month, traders have been experiencing tightness of liquidity and so they have lowered their prices in order to attract sales. Meanwhile, prices in the spot market are lower than ordering prices from steelmakers. Although some steelmakers have stated they are ready to negotiate on prices, traders have been reluctant to purchase. There is still no sign of any pickup in business ahead of September which is traditionally a good month for demand. It is expected that HDG prices in the Chinese domestic market will continue to move down in the coming week.