HRC Market Report August 2016
2016-09-01 15:56:05 【Print】
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HRC prices fluctuated frequently during the month, prompted by positive macro news stemming from the insufficient downstream demand during the rainy season
. Having reported satisfactory operating performance in H1, most domestic producers weren’t burdened by sales pressure and refused to cut prices. – whereupon, major mills, such as Baosteel, WISCO, Ansteel, Benxi Steel, HBIS and Shougang Steel, raised their HRC list prices for September production by RMB100-200/t (USD15-30/t) . In the meantime, with the country as a whole only completing 47% of the 45 million tonnes of yearly steel production capacity cuts targeted for January to July, participants anticipated that central government might release more restrictive policies in the remainder of the year to force mills to reduce production . As a result, they became cautiously optimistic in their attitude regarding the market prospects . In addition, a sharp price increase in the HRC futures market also stimulated traders in the spot market to lift prices to a considerable extent.