During the week ending September 18, Chinese domestic hot dip galvanized (HDG) prices have continued to soften slightly, while transaction activity has remained at poor levels. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, major Chinese steelmakers have issued their prices for October delivery, with both Baosteel and WISCO cutting their HDG prices by RMB 100/mt ($16/mt), contributing to the weakening of HDG prices in the spot market. HDG traders mostly continue to hold a pessimistic view of the future prospects for the market. Traders are reluctant to place orders for new materials since demand remains sluggish and also as the cost of buying new materials is higher than sales prices in the spot market. It is expected that HDG prices in the Chinese domestic market will continue to follow a slight downtrend in the coming week.