HRC Prices Gain Support from Bullish Outlook

SHANGHAI, Feb 22 (SMM) - Affected by overseas bullish outlook on iron ore prices in the second quarter, HRC futures prices rose strongly, with an increase of 1.39%. In the spot market, the overall transactions were acceptable despite the decline. Moreover, the traders were generally bullish about the market, and some traders in the north China were reluctant to sell. To sum up, the prices of plain-carbon rolled steel in Qian’an has risen by 60 yuan/mt, which provided cost support for HRC prices.

In terms of fundamentals, the supply of HRC is expected to be stable this week, with a slight reduction in the follow-up stage amid the stable recovery of demand. In the follow-up stage, with the gradual recovery of terminal demand and the continuous stimulation of strong domestic expectations, short-term HRC prices will continue to increase.