During the week ending October 10, Chinese domestic hot dip galvanized (HDG) prices have moved in a downward direction. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
Affected by slack domestic demand for HDG, inquiries received by local traders have been on the scarce side, while overall transaction activity is now tepid, with offers in the market trending down slightly. On the bright side, with the National Day holiday now over, it is thought that demand in the local HDG market will likely improve in the near term. Domestic traders now have more cash available as compared to the end of September, though their margins have been squeezed as HDG prices are in the vicinity of production costs. It is expected that Chinese domestic HDG prices will trend sideways in the coming week.