After China's three-day New Year holiday, demand from downstream users at first was not very good, and only a slight rise was observed in the spot market. However, boosted by the bullish steel futures market, rising billet prices, and Baosteel's RMB 160/mt increase in its HRC ex-works prices for February delivery, many local HRC traders have started to push up their offer prices. Transaction activity is now quite good amid optimism as regards the prospects for the domestic HRC market in the coming period.
It is thought that other domestic steelmakers may follow the example of Baosteel and increase their HRC ex-works prices for February delivery. Chinese domestic HRC prices will likely continue to move up in the coming week.