It is reported that domestic HRC market continued correction boosted by export rebate removals policy and most traders didn''t believe that the future market would turn better which may prolong the downswing trend in the following weeks this week.
Prices for HRC in Shanghai market eyed an obvious decline of CNY 120 per tonne on the decreasing exports and insufficient market demand. As predicted, local HRC market would continue edging down with fluctuations next week.
Mr Li Shuangzhong GM of Shanghai Ruishen Metal Materials Co Ltd said 1.8mm HRC was priced at CNY 4,500 per tonne in his company, 2.0mm at CNY 4,450 per tonne, 2.75mm at CNY 4,180 per tonne, 3.0mm at CNY 4,150 per tonne, 4.0mm at CNY 4,130 per tonne, 4.75mm at CNY 4,100 per tonne and that of Benxi Steel made HRC 4.75mm arrived at CNY 4,000 per tonne down by CNY 120 per tonne.
At present, some traders rushed to ship out products at lower prices for cashing out, because they thought there were lots of uncertainties influencing the future market accelerating the spot prices to decline further.
The market supply & demand contradiction became increasingly prominent. In Apr, CRC and HRC output eyed increase of 40.5%YoY and 23.8%YoY respectively hitting new high record in history. Meanwhile, demand from down-stream industry was on the wane which led supplying pressure to domestic market. Nowadays, the stockpiles of HRC in Shanghai market went at around 1.6 million tonnes and the whole market is hard to pick up in a short run.
At last, Mr Li suggested that the steel traders should be more confident toward the future market, taking a much more cautious attitude toward real operation.