As of August 1, Chinese domestic hot dip galvanized (HDG) prices generally indicate a slight rise compared to one week ago, while there has been some variation in the price trend depending on the different regions. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
In the past week, transaction activity in the local HDG market has been on the slow side. Meanwhile, leading Chinese steel producer Shagang Group has recently announced a hike of RMB 170/mt ($27.7/mt) in its HRC prices for August shipment as compared to prices for July shipment. This is expected to increase production costs for HDG producers. However, due to the low number of construction starts currently, demand for HDG products in China has declined. It is expected that in the short term Chinese domestic HDG prices will fluctuate within a narrow range.