Traders in local Chinese HRC market likely to remain cautious

During the week ending July 9, hot rolled coil (HRC) prices in the Chinese domestic market have rebounded, stimulated by increases in the steel futures market. Average HRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.    
 
Observing the uptrend in domestic HRC prices, buyers have stepped their purchases of tonnages in the past week. According to market insiders, the price uptrend has relatively solid support this time. The readiness of mills to raise their list prices has also helped to push up market prices. In the medium term, there is not expected to be any substantial improvement in relation to the imbalance between supply and demand, and so most traders will continue to maintain a cautious stance.
 
In the near future, the local Chinese HRC market will not decrease much further following the previous declines which were recorded.