China's HRC prices increased due to growing demand

As of March 3, the spot price of Q235 4.75mm HRC has increased by Yuan 57/ton ($8.2/ton) since February 24, reaching Yuan 4,394/ton, including 13% VAT.

A Shanghai analyst noted the increase in HRC futures prices on the Shanghai Futures Exchange (SHFE) and said that many traders have raised their offer prices.

According to official data, the most traded HRC futures contract on SHFE for May delivery closed at Yuan 4,371/ton, up Yuan 87/ton on March 3.

From February 23 to March 2, HRC production among 37 Chinese steelmakers reached 3.1 million tons, down 11,200 tons (0.4%) w-o-w. In the same period, the hot rolling capacity of the factories decreased by 0.29 to 78.78%.

The Shanghai-based analyst added that the resumption of normal production by some factories in northwestern China after maintenance interruptions has led to increased production.

HRC stocks of factories in 33 Chinese cities decreased by 110,400 tons (3.7%) in the week to 2.9 million tons as of March 2.

In parallel, HRC inventories owned by the 37 factories surveyed decreased by 19,000 tons (2.2% per week) for the fifth week to 845,800 tons as of March 1.