Under the influence of the decline in semi-finished steel prices last weekend and the significant drops in domestic rebar futures prices, steel traders in China are now less confident. The previous strong uptrend seen in the HRC market has created a large disparity between HRC spot prices and HRC futures prices, which points to room for downward movement in the HRC market even though supply is currently not plentiful. At present, most HRC traders lack confidence as regards the prospects for the market in the coming period.
In a context of lower confidence and soft demand, it is expected that China's HRC market will continue to drop down during the coming seven days.