Prices of hot-rolled coil to rise post-CNY

SHANGHAI, Feb 27 (SMM) – Prices of hot-rolled coil are expected to rise as inventory thins and as post-holiday restocking begins, SMM learned from businesses.

Low output in February and higher exports will put little pressure on inventory in March, and demand will increase from post-holiday restocking.

Stricter laws for environmental protection are also likely to limit production during the heating season in 2018 and 2019. An example is the staggered steel production plan for the non-heating season in Tangshan in 2018.

Financial stress on companies were also alleviated as banks eased restrictions on new loans. Banks had stopped issuing new loans ahead of the Chinese New Year holiday. 

Social inventories also face less pressure after significant growth in overall inventories from port congestion during the holiday.

For editorial queries, please contact Daisy Tseng at daisy@smm.cn 
For more information on how to access our research reports, please email service.en@smm.cn