HRC Prices Rebound On Macro Tailwinds In China And Overseas

SHANGHAI, Jun 2 (SMM) –HRC futures closed up 3.01% at 3,664 yuan/mt yesterday, buoyed by macro tailwinds in China and overseas. Spot prices also rose in many regions and transactions were modest. HRC output fell this week due to maintenance by some steel mills in north, central, east and north-west China.

HRC social inventories fell sharply this week, mainly driven by south and north China, where supply pressure eased or rigid demand improved. Inventories in east China rose. If prices sustain gains, demand may be released further. The tenth round of coke price cuts will weaken cost support to HRC prices, but improved market sentiment may allow HRC prices to stabilize.