According to Steel Radar's evaluation, HRC prices in China have shown an upward trend since mid-May. The Chinese HRC price, which was recorded at 547 USD on May 22, dropped sharply to 537 USD on May 23.
It is stated that in the medium term, hot rolled coils maintain their strong supply and demand structure, but high supply slows down the rate of depletion of stocks. According to the data received, weekly hot rolled coil production increased by 7,000 tons compared to the previous month and reached 3.2536 million tons. In the same period, weekly demand decreased by 26,600 tons, while total stock decreased by 24,800 tons to 4.1317 million tons.
Looking at the latest developments in China's construction and steel markets, it seems that policies to stabilize inventory growth and the real estate market may encourage a moderate recovery in prices in the second and third quarters. These policies, together with efforts to restore nominal economic indicators, are expected to contribute positively to the country's overall economic performance.
Considering that the real estate sector is still the main driver of the economy and traditional real estate control policies remain ineffective, the speed of implementation of the policy to stabilize this sector is of critical importance.
Currently, there is no obvious sign of improvement in the demand for HRC, and there are still negative risk factors on the export side. This makes spot market performance cautious.
As a result, a careful and strategic approach needs to be followed in China's construction steel and hot rolled coil markets due to the impact of macroeconomic developments. The performance of these markets in the coming period will depend on the success of the policies implemented and the improvement of macroeconomic indicators.
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