HRC : The domestic HRC market continued to post mild gains last week. Prices in East China increased by RMB 30–70/tonne; Central and South China saw gains of RMB 40–50/tonne; North and Northeast China rose by RMB 30–60/tonne; and Western China also experienced small increases.

As of last Friday, average prices for 2.75mm and 5.75mm HRC in 28 key cities were RMB 3,446/tonne and RMB 3,361/tonne respectively, up RMB 43/tonne and RMB 42/tonne from the previous week.

According to SteelHome, HRC inventories stood at 3.61 million tonnes, basically unchanged from the prior week. The average daily transaction volume was 17,900 tonnes, down 0.6% week-on-week.

HRC spot prices have continued to rise, driven in part by gains in the ferrous futures market and expectations of production curbs. While the off-season demand may impose some constraints after short-term sentiment is released, most major steelmakers have raised their ex-works prices, pushing up arrival costs. As a result, the HRC market is expected to move upward with continued volatility this week.