The increase in recent new arrivals due to accelerated shipments by HDG producers has to some extent alleviated the supply problem in the domestic market. Entering the cold winter season, local traders have become more concerned by the already-low downstream demand. In the given week, transaction activities in the Chinese HDG market have slowed down in comparison with previous weeks, while some traders have slightly reduced their offers.
As for the short term, HDG prices in the Chinese domestic market are expected to be characterized by softness. However, bolstered by production costs, no significant decreases are anticipated.