Chinese steel mills have begun cutting production, driving up the price of imported hot-rolled coil (HRC). Coupled with recent depreciation of the Taiwan dollar, hot-dipped galvanized steel (HGI) prices in Taiwan are expected to rebound. 

Before China Steel Corp.'s new price announcement, domestic distributors engaged in price competition, pushing prices to a near 10-year low. However, rising iron ore prices have also led to increases in HRC offers from Japanese, South Korean, and ASEAN mills, while China's HRC has withdrawn from the market due to anti-dumping measures. 

Although overall demand remains weak, the positive outlook for raw materials and pricing trends, coupled with production cuts by Chinese mills, has led market participants to predict a gradual recovery in HGI prices.