The lack of significant new arrivals in the Chinese HDG market during the given week has helped to boost market prices. Overall order activity has not been so great, mainly consisting of replenishments of certain specifications with purchases of small tonnages. Lately, several major steel producers including Anshan Steel, Benxi Steel and Shagang Group have been considering canceling the necessity for customers to give deposits when placing orders. The producers would thus aim to boost their order volumes.
Despite slackening demand, it is expected that prices in the Chinese HDG market will trend sideways next week, especially as supply is also on the short side.