During the week ending January 17, hot dip galvanized (HDG) prices in the Chinese domestic market have showed an uneven trend, with some specifications seeing rises and others indicating slight drops. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
As China's Spring Festival draws closer, some traders have started to reduce their business activity as of this week. Some offer prices are negotiable amid the current sluggishness on the transaction side. Major domestic producer Ansteel has issued its HDG prices for February delivery, raising its prices for S280GD+Z, StE280Z, SS275 and SGC400 materials by RMB 250/mt ($39/mt). Traders' booking costs will rise in line with steelmakers' price increases, thereby providing stronger support for market prices. Currently, traders are receiving HDG materials booked for January delivery. As the Spring Festival approaches, it is thought that HDG inventory may move up in the short term.
As for the coming week, it is expected that HDG prices in the Chinese domestic market will follow a slight downtrend.