At the end of July, Chinese HR prices rose slightly due to reduced production and reduced inventories, which was a positive signal for all market players. Most traders stopped short selling in August because they were not convinced that a lower price would be available from the factory.
The main upswing factor is a 1mn ton reduction in steel inventories for construction, but the recent decline in sheet material inventories has raised expectations for the near future.
However, some trading firms continued to sell short, believing that the market price might fall. Prices may decrease again next week.
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