Steel prices to still swing on s soft note

Ferrous metal prices gave away gains achieved two weeks ago. At the beginning of last week, it was rumoured that government bonds would be issued along with the RRR and interest rate cuts in order to release liquidity to support the Chinese economy. In the second half of last week, the seventh round of coke price cuts was implemented, and the price may further dip. Shrinking apparent demand from its high level largely dragged down HRC futures prices. In spot market, prudent terminal buying amid price erosions triggered some sellers to secretly lower prices.
Looking ahead, with unbalanced supply/demand fundamentals of HRC, the price difference between rebar and HRC will erode. HRC exports in Q2 will need to be watched. With the brief closure of steel market for the forthcoming three-day Qingming Festival and weather disturbances, ferrous metal market may swing on a subdued footing this week.