Chinese HDG market still shows slight uptrend

In the past week, the Chinese hot dip galvanized (HDG) steel market has continued the slight uptrend witnessed in the previous week. Average HDG prices in the main Chinese markets can be viewed in the SteelOrbis price reports section.   
 
In the Chinese HDG market, prices have continued to follow a firm trend. The price policies for April production issued by domestic steel mills have generally indicated increases or remained unchanged, while support from raw material costs has strengthened. Meanwhile, market demand has also showed some improvement. Although recent domestic HDG demand has not performed as well as demand for other steel products and while overall HDG demand is lower compared with the same time last year, it is thought that the prospects for domestic HDG demand are positive given the improving weather conditions and the relatively low price levels at the current time.
 
The purchasing activity of most traders is reported to be at normal levels, while they are managing to sell shipments with a small profit. Traders‘ inventories are considered to be at low levels.
 
It is expected that the Chinese HDG market will continue to indicate small price increases in the short term.