After the Labor Day Holiday (Apr. 29-May 1), a few traders have not yet returned to the market. As a result, order tonnages have been significantly reduced, causing a slight decrease in prices of some specifications. Amid lower production costs of galvanized mills, prices in the spot market have been fluctuating downward.
In April, the purchasing managers index (PMI) of the manufacturing sector in China softened to 50.6 percent, while there is a lack of sufficient impetus for any recovery in the domestic economy. Thus, local traders are still cautious on the prospects for HDG demand levels in late May.
On the whole, it is expected that the Chinese hot dip galvanized market will continue to follow a slight downward trend.