About 35% Of Chinese HRC Steel Mills Make Profits, Exports Likely To Fall Sharply In June

SHANGHAI, Jun 13 (SMM) – HRC futures prices closed down 0.82% at 3763 yuan/mt yesterday June 12. Spot prices also fell. About 35% of steel mills reported profits of 100-200 yuan/mt after coke price cuts. HRC exports are expected at 596,000 mt in June, down 6.44% from actual exports in May. Domestic demand was also weak amid sluggish PPI and CPI. Fundamentals will hardly improve soon. Market is expecting economic stimulus policies after negative economic data. Major state-owned banks have also cut deposit rates last Friday. HRC prices will move rangebound in the short term.