According to Mr Zhang Dongyong general manager of Shanghai Gaiqun Trade Co Ltd, HRC market in China is to see retreats in July and August and look up in September and October in general the situation in the later half year will turn better than in the H1 with the price possibly to hit new high.
Mr Zhang said the HRC market has stepped upward amid fluctuations in the recent two months. But pressure is that the demand remains insufficient and the stocks have swelled rather than come down. This is to say, the supply is going excessive of demand which is the major reason behind the possible future retreats.
In July and August, demand for HRC is more likely to reduce than to move up for such sector as household appliance would go off the mid season and construction will also be affected in the hot days.
In September and October, HRC market is yet to look up since the downstream industries should welcome in new busy season. Moreover, the policy of lifting steel export rebates as of June 1st will somewhat help improve export performance. In one or two months when the international steel price goes up, Chinese export of HRC could increase, supportive of the domestic market to stabilize.
Mr Zhang forecast that as seen from above, the HRC market may gradually go up and the price is hitting new highs with carbon grade possibly to top CNY 4000 per tonne.