In the past week, the Chinese hot dip galvanized (HDG) steel market has trended down again, but by a smaller margin than in the previous week. Average prices in the main Chinese markets can be viewed in the SteelOrbis price reports section.
Amid increased steel futures prices and reports of imminent stimulus measures to be announced by the Chinese government, traders in the Chinese HDG market have become a little more confident, leading to improved stability in market prices. Traders now believe that any further declines in HDG prices will be limited, but they are not sure whether prices have enough support to post a rebound and so they are adopting a wait-and-see approach to the market for the time being. Steel mills are not inclined to cut their HDG prices at the current time. However, if demand continues to remain low, the steel producers may have to cut their prices again under pressure from their inventories.
Summing up, it is thought that the Chinese HDG market will likely follow a slight downward trend in the coming week.