Domestic HRC traders express no surprise at the reversal of the price trend seen in the past week, following the rising movement seen in the days after the return from the National Day holiday. In their view, prices had been rebounding at an unreasonable speed. In addition, demand is at insufficient levels, while declines in the steel futures market have also had an influence on the domestic HRC market.
In the absence of arrivals of large volumes of new supplies in the market, domestic HRC prices in China are not expected to see further significant decreases. Nevertheless, it is thought that in the coming week HRC prices in the Chinese market will still be characterized by softness.