The steel futures market in China started to witness a rebound around one week ago, boosting traders' optimism on the prospects for the domestic HRC market in the coming period and resulting in higher HRC offer prices. However, demand has remained sluggish and there has not been any significant improvement in the overall transaction volume. Although most traders hold an optimistic view, some traders have been obliged to sell materials in hand in order to bring in funds.
Market insiders have told SteelOrbis that Jiangsu-based producer Shagang has issued a new price settlement policy for March transactions, with 60 percent of supplies to traders to be settled at March prices and 40 percent to be settled at April prices, which will lessen the cost pressure on traders.
Weak demand may continue to restrict the upward movement of prices. It is expected that HRC prices in the Chinese domestic market will move sideways in the short term.