In May, China’s HRC prices rose substantially and then went down. Market prices hit a new high, with daily price change of around 50-300 yuan per tonne. Traders stopped receiving orders when the price surged, meanwhile, however, they were eager to undersell when the price plummeted. Downstream end-users preferred to purchase according to their demand.

          At present, operating rate of domestic HRC production line continues to maintain high, although supply in certain market still remains tight.

          SteelHome believes that China’s HRC price will rally and then continue to fall in June.

          China’s steel market prices went through the process of rapid rising and dropping in May. After a rapid price surge, domestic HRC market prices broke the record in 2008. On May 12, HRC spot price at Shanghai market reached 6,730 yuan per tonne, hitting a new high.

          In summary, market risks have released as steel prices have dropped significantly. Considering the upcoming high temperature and rainy weather in the Southern China market, steel demand will reduce accordingly. It is believed that China’s HRC prices will possibly continue to fall.