During the week ending October 25, hot dip galvanized (HDG) prices in the Chinese domestic market have been stable, with no many market activities. Average HDG prices in the market can be viewed in the SteelOrbis price reports section.
Recently, Chinese HDG market has been short of supply, with a shortage of certain sizes. As of October 24, the HDG inventory in Shanghai market was only 165,800 mt. This is expected to support the prices of the material in question.
Up to now, most major steel producers in China have released their new price policy in November. In particular, Hubei province-based Wuhan Iron and Steel Company (WISCO) raised its list prices of DX51, DX52 and DX53 galvanized products by RMB 50/mt ($7/mt), while Liaoning province-based Benxi Steel Group announced to maintain its official price unchanged. At the same time, Baosteel and Anshan Steel Group will also keep their offers neutral according to the announcements. Market insiders think that steel mills are not positive enough towards the future market.
In terms of the short run, it's expected that HDG prices in the Chinese market would just follow a slight sideways trend.