Amid weak demand and sluggish market activity, local HDG traders have remained cautious during the past week, though the slight upticks witnessed have helped boost market confidence to some extent. Nevertheless, the price trend in the past week was still slightly down. Some traders have started to order low-priced materials in order to replenish their stocks.
With the arrival of June, purchases of downstream users have been impacted by higher temperatures. On the whole, as domestic production of HDG products remains at high levels, there is still a strong imbalance between supply and demand. It is thought that HDG prices in the Chinese domestic market are unlikely to indicate any big increase in the short run.