HRC prices in the main Chinese markets have generally showed a small decrease in the week in question. The Lecong and Tianjin markets maintained their slight downtrend of the previous week, while traders in the Shanghai market made a tentative increase of RMB 10-20/mt ($1-3/mt) to their HRC prices on May 29. However, it is reported that the increased prices have attracted few inquiries.
Rumors that China may initiate economic stimulus measures worth RMB 2 trillion (about $315 billion) have been denied by the National Development and Reform Commission. However, the NDRC has accelerated the approval of new projects recently, resulting in speculation that the Chinese government will launch new investments and try to boost consumption. As a result, traders in the domestic HRC market are now less pessimistic.
Overall, activity in the Chinese HRC market is still sluggish, while market prices would likely rebound if demand increases. It is expected that HRC prices in China will continue to trend down slightly in the coming week.