During the week ending July 17, Chinese domestic hot dip galvanized (HDG) prices have continued their stable trend, 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, demand for HDG from downstream users has remained slack as China has entered the hot summer season, while traders mostly hold a pessimistic view of the future prospect for the market. So far in the current year, downstream industries have been cautious about concluding purchases due to tightness of liquidity. Meanwhile, certain infrastructure projects, including construction of high-speed railways and subways, will likely provide some support for the finished steel markets in China in the coming period. It is expected that HDG prices in the Chinese domestic market will continue to follow an overall stable trend in the week ahead.