During the week ending March 21, hot dip galvanized (HDG) prices in the Chinese domestic market have indicated a slight softening. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
Transaction activity has been quiet in China's domestic HDG market over the past week. HDG traders are pessimistic on the prospects for the market in the coming period amid the overall soft trend in the steel product markets. Some private sector steelmakers have told SteelOrbis that, while domestic demand has been sluggish, export demand has seen a somewhat better performance, thereby helping to compensate for the slackness of activity in the domestic market. Although so far there has not been strong inventory pressure on the steelmakers' side, producers are inclined to sell at lower prices due to the bearish market outlook.
Domestic producers Anshan Iron and Steel, Shougang and Benxi Iron and Steel have issued new prices for April delivery, cutting their ex-works prices or increasing discounts. However, some HDG traders are still very cautious as regards concluding bookings due to their lack of optimism.
Overall, it is expected that HDG prices in the Chinese domestic market will remain on a slight downtrend in the coming week.