Is there a way to get dwg solid colour hatches to show when imported in sketchup? or an easy way to create faces rather than trace the lines ?
If an edge loop from your dwg is closed and coplanar and no half loose edges protruding inward, then tracing just one edge should be enough for SketchUp to create a face for that loop.
Be sure you trace in the same environment (level) as the dwg edges. The dwg might still be grouped.