During the week ending June 21, the Chinese hot dip galvanized (HDG) market has softened further. Market activity is at very low levels, while many HDG traders are purchasing only in line with urgent needs. Average HDG prices in the main Chinese markets can be viewed in the SteelOrbis price reports section.
Low downstream demand, especially from the Chinese household appliance sector, has contributed to the soft trend of prices in the Chinese HDG market. Prospects for the domestic HDG market do not seem very bright at present. Meanwhile, many traders state that, with economic growth slower than expected, they prefer to maintain a cautious approach to business.
Chinese HDG export activity witnessed an obvious decline in May and is unlikely to see a recovery in June. Low demand in overseas markets has impacted some domestic HDG producers which export a high percentage of production. For example, WISCO, which previously exported a large share of its galvanized output, has been forced to focus more on its domestic market and also to cut its market prices.
It is thought that the Chinese domestic HDG market will indicate a further softening in the coming seven days.