During the week ending August 22, Chinese domestic hot dip galvanized (HDG) prices have indicated a slight upward movement. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
In the given week, domestic HDG prices have been trending upwards due to the rise in mills' production costs and amid tight supplies of material. In addition, domestic steel producer Angang Steel recently announced a hike in its galvanized product prices, and this has also helped to provide support for prices in the spot market. Some producers have been focusing on export orders, leading to a decrease in supply for the domestic market. However, market observers state that activity in the market has yet to reach satisfactory levels and so traders may face risks if they continue to hike their offer prices.
It is thought that Chinese domestic HDG prices will likely fluctuate within a small range in the coming week.