CHINA HRC: Prices on rollercoaster ride amid supply uncertainty

October 14, 2021 / www.metalbulletin.com / Article Link

Domestic hot-rolled coil prices in China moved within a wide range on Wednesday October 13, after futures took a rollercoaster ride amid an uncertain outlook for supply and demand.

Domestic
Eastern China (Shanghai): 5,700-5,880 yuan ($885-913) per tonne, widening by 50-120 yuan per tonne
The most-traded HRC contract on the Shanghai Futures Exchange extended its losses to an intraday low of 5,482 yuan per tonne - its lowest since September 27 - in morning trade on Wednesday.
The weakness was driven by expectations that supply will increase after the easing of power cuts in Jiangsu province in eastern China, Guangdong in southern China and Guangxi in the southwest, according to a Shanghai-based industry analyst.

The possible easing of production curbs in those regions came after Beijing urged for the correction of "one-size-fits-all" or "campaign-style" practices to cut...

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