HRC Prices Edge Up Amid Weak Supply-Demand Balance, Slight Rebound Expected

Published: Jan 23, 2026 17:38

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HRC prices edged up today, with the most-traded contract closing at 3,305 yuan/mt, up 0.52% for the day. This week, futures moved lower first then higher, while spot prices fell 10 yuan/mt WoW from last Friday. Trading activity remained moderate to weak during the week. Apart from the impact of the explosion incident, market news was bearish, and HRC prices fluctuated sideways around fundamentals. On the supply side, rolling line disruptions increased this week, leading to a continued decline in production. Maintenance plans are still scheduled in northern regions next week, leaving room for further output adjustments. Inventory levels remained at a relatively high level, while the destocking pace slowed down, reflecting persistent weak demand during the off-season. Market purchasing was mainly as needed, with higher volumes at lower prices and moderate activity at higher levels. Although speculative demand increased, it remained limited overall. Considering still moderate cost support, the HRC market is currently in a weak supply-demand balance, lacking clear upward or downward catalysts. Given the weaker performance over the past two weeks, HRC prices are expected to rebound slightly next week, with the most-traded contract likely to move sideways in the 3,270–3,350 range.

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