HRC Prices are Limited by Weak Demand

SHANGHAI, Mar 6 (SMM) - Considering that the current demand has not ushered in a significant release, the steel mills was less willing to increase the production. On the demand side, driven by downstream industries such as infrastructure and automobiles, SMM believes that the demand for HRC is still acceptable. During the “Two Sessions”, the overall market may be stable. However, subject to actual demand, the increase may be limited. SHFE 2305 HRC contract may run in a range of 4,260-4,460 yuan/mt.

On the supply side, the output of HRC fluctuated in a narrow range. On the demand side, the social inventory of HRC across 69 warehouses in China surveyed by SMM was 4.72 million mt, an increase of 0.36% from the previous week.