Amid low demand, there has been a slight drop in mainstream HDG prices in China in the past week. In March, galvanized steel sheet output in China totaled 3.305 million mt, up 24.62 percent month on month and up 23.32 percent year on year. In the first three months, Chinese galvanized steel sheet output totaled 8.637 million mt, indicating a significant year-on-year increase. Although the increased output may not have a strong negative influence in the short term, it will negatively impact confidence levels in the market. Some traders state that they are worried about the supply-and-demand situation.
In view of cost pressure and the low volume of domestic orders, some private sector steel mills have halted production lines in order to minimize risk. At the same time, their export order volumes are stable.
Summing up, it is expected that the Chinese HDG market will trend down by a small margin in the coming week.