HRC prices in futures market have been increasing recently, keeping in line with spot market prices in general, dispersing some of uncertainties regarding the prospects for the market. In addition, main Chinese steelmakers have cut down their shipments to southern China, ant this has limited the new material flow to the market. So no significant change has been seen in the supply and demand equilibrium. Currently, traders are unable to hand out their HRC inventories in spot market, amid heavy capital pressures, as traders are not willing to sell at lower prices.
Overall, Chinese domestic HRC prices are expected to continue trending sideways in the coming week.