During the week ending November 21, Chinese domestic hot dip galvanized (HDG) prices have mainly been stable, though with some very slight softening seen in prices of thick specifications. Average HDG prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
Traders have told SteelOrbis that sluggish demand from construction sites due to the increasingly cold weather has exerted a negative impact on transaction activity in the domestic HDG market. Traders mostly hold a cautious view of the prospects for the future market, while they are unwilling to cut their offer prices as the materials they have in hand were booked at higher levels that the current spot market prices.
Meanwhile, the latest data from the China Iron and Steel Association (CISA) indicates that average daily crude steel output in China was up 2.2 percent in early November compared to late October, rising to 2.144 million mt. In addition, domestic HDG producers in China are operating at high capacity utilization levels, increasing the supply pressure on the HDG market.
It is thought that Chinese domestic HDG prices will mostly remain stable in the coming week, though with some slight fluctuations.