Following domestic steel mills' announcements of increased prices, traders have become more optimistic on the prospects for China's HRC market in the coming period.
Although current end-user demand is not high, HRC demand and transaction volumes are expected to revive gradually in line with improving weather conditions. Meanwhile, given the higher cost of buying HRC materials from producers for March shipment, HRC traders are obviously inclined to increase their prices. As a result, HRC prices in China are generally expected to continue their rising trend. Nevertheless, in view of the uncertain international economic situation, the growth of end-user demand may be slower than expected and so further time may be needed for the market to recover fully.
It is expected that the Chinese HRC market will witness a slight uptrend in the coming week.