In the past week, the Chinese hot dip galvanized (HDG) market has mostly moved on a stable trend, though with slight drops in certain markets. Average HDG prices in the main Chinese markets can be viewed in the SteelOrbis price reports section.
There has been a decline in transaction volumes in the Chinese HDG market in the past week.
Given that steel mills are on the verge of incurring losses, they will likely increase their ex-work prices for HDG in the short term. In general, the mills are not inclined to sell cargoes at low prices, but prefer to maintain a wait-and-see stance. At present, traders are limiting their deliveries and have adopted a cautious approach to market activity.
Some large household appliance manufacturers purchased significant HDG supplies from the steel mills, and some have stated that they have sufficient inventories for two months.
It is thought that the Chinese HDG market will fluctuate downward in the coming week.