HRC Prices to Grow Further on the Opening of Two Sessions

SHANGHAI, Feb 27 (SMM)- HRC output was stable WoW as the impact of maintenance weakened. On the demand side, steel prices rose rapidly during the week, and terminal companies slowed down their purchases in fear of a further rise in the prices. Speculative transactions were significantly more active than transactions from terminal sectors. Last week, the social inventory of HRC across 69 warehouses across China was 4.73 million mt, up 36,500 mt or 0.78% WoW. Demand in south China and east China picked up faster than that in north China. Some steel mills in north China will undergo maintenance this week, and the weekly output of HRC may drop slightly. On the demand side, high prices will curb downstream procurement to a certain extent, but the market is optimistic about the mid-term demand. With the opening of Two Sessions this week, the vigorous market sentiment is expected to push up the HRC prices.