Due to the Qingming Festival in China in the early part of the current week, there have been few deals in the domestic HDG market. As there are only two working days in the week, some traders have taken the whole week off work. On the other hand, some end-users have purchased cargoes in line with their demand. Currently, HDG traders are adopting a-wait-and-see stance and hope that the market will trend upward in the coming week. At present, traders' inventory volumes are on the short side, while costs are providing support for market prices.
Meanwhile, the China Securities Regulatory Commission has increased its QFII (qualified foreign institutional investors) investment quota by $50 billion to $80 billion, which may provide strong support for the domestic steel markets.
Summing up, it is thought that the Chinese HDG market will likely continue to move in a slight upward direction in the coming seven days.