Latest situation in local Chinese HDG market

During the week ending July 4, Chinese domestic hot dip galvanized (HDG) prices have mainly remained stable, though with some slight upticks in prices of HDG products of thin specifications. At the same time, transaction activity has continued to be sluggish. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.  Some slight price increases have been witnessed in the market due to resumption of purchases by some traders when prices came into line with their price idea.
 
For the short term, it is thought that no big increases are likely to be seen in the Chinese HDG market. On the one hand, the overall steel market is still characterized by weakness. Traders have low-priced materials, having ordered them after major steel producers announced reductions in prices. On the other hand, HDG production is still high, and this is expected to prevent market prices from rising. Meanwhile, entering into the traditional slow season, demand is not expected to recover in the near term.
 
As for the coming week, it is expected that Chinese domestic HDG prices will continue to follow a soft trend, though the margin for decrease is considered to be limited.