As of February 27, China's Q235 4.75mm hot rolled coil spot price increased by 50 Yuan/ton ($7.2/ton) compared to February 20, reaching 4,336 Yuan/ton, including 13% VAT.
A Shanghai-based analyst said that many traders raised their offer prices after noting the increase in HRC futures prices on the SHFE.
The exchange's top traded HRC contract for May delivery closed the daytime trading period, which was 4,277 Yuan/ton on February 27, 29 Yuan/ton higher than the February 20 settlement price, according to official data.
From February 16-22, HRC output of 37 Chinese steelmakers decreased by 5,300 tons (0.2%) week on week to 3.1 million tons. In the same period, the hot rolling capacity of the factories decreased by 0.14 points to 78.49%.
Many traders were determined to sell some stocks to make a profit during the survey period. However, the continued rise in HRC prices has disinclined the buying desire among end users, and many have only procured products to fulfill their urgent demands.
Hot-rolled coil stocks in trading houses in 33 Chinese cities decreased by 45,200 tons (1.5%) to 3 million tons for the week ended February 23.
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