During the week ending September 12, Chinese domestic hot dip galvanized (HDG) prices have indicated a slight weakness. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
In the past week, participants in the Chinese domestic HDG market have generally had a wait-and-see attitude, with most traders' offer prices remaining stable, though slight declines have been witnessed in transaction prices. Traders have told SteelOrbis that, though market demand has improved to some degree so far in September, it is not as good as in the same period last year. In this context, local traders are not so confident as regards the future prospects for the domestic HDG market.
On September 11, Chinese steel giant Baosteel issued its flat steel prices for October delivery, raising its HDG prices by RMB 100/mt ($16/mt), while the HDG product prices of its Shanghai-based subsidiary Meishan Steel have been increased by RMB 50/mt ($8/mt). Such price increases by steelmakers may boost cost support for the HDG market in the coming period. It is thought that the Chinese domestic HDG market will be characterized by minor fluctuations in the week ahead, while sharp downward movements in the market are considered to be unlikely.
$1 = RMB 6.12