During the week ending July 26, hot dip galvanized (HDG) prices in China's domestic market have continued to drop down, with larger decreases seen as compared to the previous week. Average prices of HDG in the Chinese market can be viewed in the SteelOrbis price reports section.
Most traders indicate a halving of their HDG product sales volumes in July as compared to June. In the most recent period, traders incurred losses of RMB 100-200/mt ($15-31/mt) in their HDG sales. At present, HDG sales prices are RMB 200-300/mt ($31-47/mt) higher than CRC product sales prices.
Although some steel mills - mainly private sector mills, have started to carry out overhauls or even to halt production, this has not had any significant impact on the current HDG market.
Given the pessimistic mood in the market and the lack of a recovery in market activity, it is expected that HDG prices in the Chinese domestic market will continue to slip down further in the coming week.