Transaction activity in the Chinese domestic HDG market has continued to be low during the past week amid sluggish demand from downstream users. On January 22, major domestic producer Baosteel issued its price policy for March delivery, raising its HDG prices by RMB 100/mt ($16). Traders think this price increase is mainly aimed at boosting confidence in the market, though the upward price adjustment has not provided much support for current market prices. In the meantime, more and more traders are preparing to leave the market as the Spring Festival/Chinese New Year holiday draws closer.
As for the coming week, it is thought that HDG prices in the Chinese domestic market will remain on a stable trend amid shrinking transaction volumes.