On August 23, domestic steelmaker Benxi Steel announced a cut of RMB 200/mt ($31/mt) in its prices of HDG and pre-painted galvanized iron (PPGI) products for September shipment. Many other steelmakers have also made similar downward adjustments.
Steel producers in China have been adopting various tactics in order to stimulate market demand. Chinese leading steelmaker Baosteel has been accepting orders at different prices based on negotiations with customers. At the same time, major domestic producer Anshan Steel issues a guidance price at the beginning of each month while adjusting the actual transaction price at the start of the following month according to the price levels prevailing in the market. Meanwhile, Shougang Steel concludes transactions at the average market price level.
Due to slack market demand, it is thought that the Chinese HDG market will not indicate any recovery in the short term.