During the week ending June 27, Chinese domestic hot dip galvanized (HDG) prices have continued to move down, amid slack transaction activity. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
Amid various negative factors such as the deterioration in the financial markets, tighter monetary policy, sharp falls in the stock market as well as noticeable declines in prices of iron ore and semi-finished steel products, HDG prices have continued to drop down in the Chinese domestic market.
As steel producers have in succession announced reductions in list prices, a majority of HDG end-users have increased their order tonnages, while traders do not appear to be active in concluding purchases. Despite expectation for further declines in the HDG market in the future, no announcements of planned overhauls have been heard from large steel plants. As a result, supply of HDG materials is expected to exceed combined domestic and export demand. However, considering the tight availability of cash, traders and mills are both eager to accelerate sales of stock materials. China's domestic HDG prices are expected to maintain their declining trend in the coming period.