Price of Spot HRC and Futures Edged Higher in January amid Market Optimism about the "Good Start" of 2023

SHANGHAI, Mar 2 (SMM) - As of January 31, SMM statistics showed that the average domestic price for HRC stood at $4,208.3/mt, a month-on-month gain of $61.1/mt.

The most active SHFE HRC contract in January inched higher. On January 31, the closing price of the HC2305 contract was 4,154 yuan/mt, an increase of 11 yuan/mt from December 30, and the highest price in the month was 4,295 yuan/mt.

In January, hot coil transactions gradually cooled down after the completion of end-user stockpiling as the CNY approached. However, the market was still bullish over economic growth in 2023. Boosted by the good start of the year, the spot and futures prices for HRC strengthened. After CNY holidays, HRC prices plummeted after sky-rocketing to high levels in the midst of significant stock accumulation in many regions, slower growth in demand compared with supply as well as strong inflationary pressure overseas.

Overall, HRC prices in mainstream markets rose by about 20-200 yuan/mt compared with December, and the price gains were remarkable in central-south, north-east China.