In the past week, the Chinese HRC market has shifted to an uptrend following its previous softness, supported by strong price movements in forward contracts. After traders pushed up their offers, there has been a strong surge in market activity, especially for products at the lower end of the price range. In particular, purchasing activity by traders has increased significantly amid positive market expectations. Many traders think there is room for further price increases provided liquidity issues do not impede upward movement of the market.
On the other hand, some HRC traders are more cautious and believe that downstream demand has not yet been fully released and that HRC exports by steel mills are still at insufficient levels.
For the coming week, the Chinese HRC market is expected to increase by a narrow margin, with strong price rises unlikely for the time being.