Many HDG traders in China are purchasing just in line with their needs, while some traders with high stock levels may provide offers below the mainstreams market prices.
Major domestic steel producer Baosteel has cut its HDG price by RMB 100/mt ($15/mt), while WISCO has reduced its prices for HDG by RMB 150-200/mt ($23-31/mt), and other major producers are likely to follow their example. Sluggish export demand also forces many Chinese HDG producers to focus more on the domestic market.
It is thought that the Chinese domestic HDG market will indicate a further softening in the coming seven days.