Currently, traders vary in their predictions for the future trend of the market. After China's central bank announced reduced interest rates, some traders considered that the market had hit bottom and so they moved to increase their inventories with low-price materials. At the same time, others traders still lack confidence in the further prospects of the market. For example, while 5.75 mm x 1,500 mm carbon steel coils are mostly offered at RMB 4,150-4,160/mt ($656-658/mt) in the local market, some pessimistic traders have been offering at RMB 4,130/mt ($653/mt).
Domestic steel giant Baosteel has cut its HRC prices by RMB 200/mt ($31/mt) for July delivery, and other local mills may follow Baosteel's example in the near term.
Overall, it is expected that the price trend in the Chinese HRC market will remain soft in the coming week.