HRC Prices Surged across Many Countries in January and to Move rangebound in the short Term

SHANGHAI, Mar 2 (SMM) - As of January 31, China’s export price of HRC was 118.4 yuan/mt higher than the average SMM domestic price, and the price difference increased by 115.1 yuan/mt from the previous month; the export price rose 304.22 yuan/mt from December 30.

In January, a mismatch of supply and demand was seen overseas, and the international market’s demand for 2023 was expected to improve. The price for HRC rallied sharply across many countries especially in India, Europe and the United States.

In January, the price difference between China’s exports and domestic trade widened significantly, mainly due to the changes in the overseas supply and demand pattern and the expected improvement, which drove the rapid recovery of overseas and export steel prices.

Considering that overseas demand is still weak, global HRC prices will move rangebound in the short term. This round of upward trend may slow down after the mismatch between global HRC supply and demand is alleviated.