HRC Prices Continue Decline Amid Supply Easing, Sluggish Demand

Published: Jan 20, 2026 17:33

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HRC prices extended their weak trend today, falling 0.97% throughout the day, with the most-traded contract settling at 3,276 yuan/mt. Spot cargo declined 10-20 yuan/mt from yesterday, while actual transactions were moderate. Cold-rolled coil prices dropped 10 yuan/mt, with poor trading activity. Supply side, this week's HRC maintenance impact reached 203,500 mt, up 72,500 mt WoW, while next week's maintenance impact is expected at 23.25 mt, an increase of 29,000 mt WoW, indicating easing supply pressure as production remains at low-to-medium levels for the period. Demand side, the market remains in the off-season, constrained by weather and other factors, with end-user rigid demand continuing to dominate in the doldrums. Although traders hold cautious expectations for the future, generally adopting a "low inventory, fast turnover" strategy, it is worth noting that total HRC inventory remains at elevated levels. Additionally, following the release of speculative demand after the previous price rally, downstream procurement may become more cautious. In the short term, production control efforts on the supply side and inventory buildup pressure are likely to balance each other, with HRC prices expected to remain in the doldrums.

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