HRC Market Report November 2016

Boosted by sharp price increase of nearly 30% in the futures market, HRC prices in the Chinese domestic spot market soared during the month, with the mark-up of RMB400-500/t (USD58-72/t). In the meantime, being burdened with heavy production costs because of rising raw materials’ prices, mills were inactive in producing, either suspended or slowed down production, and the profit for HRC was around RMB150/t (USD22/t).Asian Metal Copyright In the meantime, traders held cautiously optimistic attitudes towards the market outlook seeing upward price trend of raw materials as well as short supply of HRC, but they thought it is risky to build large inventories at such high prices.Asian Metal Copyright The downstream demand shrunk obviously in Northeast China influenced by the cold weather, and they remained weak in other regions since most end users could not accept the unreasonable high prices increase and just purchased according to urgent needs.Asian Metal Copyright In the meantime, being burdened with heavy production costs because of rising raw materials’ prices, mills were inactive in producing, either suspended or slowed down production, and the profit for HRC was around RMB150t USD22t.Asian Metal Copyright In the meantime, traders held cautiously optimistic attitudes towards the market outlook seeing upward price trend of raw materials as well as short supply of HRC, but they thought it is risky to build large inventories at such high prices.Asian Metal CopyrightBoosted by sharp price increase of nearly 30% in the futures market, HRC prices in the Chinese domestic spot market soared during the month, with the mark-up of RMB400-500t USD58-72t.Asian Metal Copyright Insiders deem the HRC price is likely to go on increasing in December.

.Asian Metal Copyright In the meantime, being burdened with heavy production costs because of rising raw materials’ prices, mills were inactive in producing, either suspended or slowed down production, and the profit for HRC was around RMB150t USD22tAsian Metal Copyright