End-users in China's hot rolled market have continued to purchase only small quantities in line with their needs. Downstream demand has still failed to improve, while many buyers are maintaining a wait-and-see stance.
As for orders for April shipment, domestic producer Angang's HRC order intake was up by 30 percent as compared to orders for March shipment. Meanwhile, Benxi Steel's HRC order intake is unchanged, while Shougang Group's HRC order intake is down 35 percent, both on month-on-month basis. On the whole, orders for April have not seen a big change. Meanwhile, supply and demand levels have generally been balanced in the recent market. Accordingly, there is little possibility of prices trending down and so most traders are positive on the prospects for the future market.
Traders indicate that, while the steel mills' new price lists will provide some support for the market trend, it is difficult to say whether market prices will see a significant increase. Overall, it is expected that HRC prices in the Chinese domestic market will continue to trend up by a limited margin in the coming seven days.