Since previous transaction activity for low-priced HDG materials was quite good as market players sought to bring in cash, most traders achieved abundant cash flow. Subsequently, traders increased their prices for some HDG materials over the past week. For instance, 1,500 mm HDG products are in short supply in the Shanghai market, with traders' prices of Hanbao Steel production 1.5 mm x 1,500 mm x C HDG now RMB 40-60/mt ($6-9/mt) higher than their prices for Hanbao Steel production 1.5 mm x 1,250 mm x C, with some offers for the 1,500 mm material even as high as RMB 4,800/mt ($764/mt).
Most traders hold a wait-and-see attitude for the long-term market, while some have been selling off all HDG material in hand. As a result, low-priced material can also be found in the market. In addition, end-users are unwilling to make purchases. Overall, the Chinese HDG market is expected to follow a soft trend in the short term.