Demand in the Chinese HRC market lacks strength, while most traders are purchasing just to meet their immediate needs. With buyers adopting a wait-and-see stance, the outlook for the market does not appear very bright.
Following recent price increases by domestic steel producers, many HRC traders would like to raise their prices especially as their profit margins have decreased. However, transaction volumes in the market are still on the low side, and traders fear that price hikes may be counterproductive at the current time.
Summing up, it is expected that the Chinese HRC market will fluctuate on a soft trend in the coming week.