China's domestic hot-rolled coil prices surged on Monday May 18 on production cuts in the country's steelmaking hub of Tangshan, which motivated exporters to raise their offers.
Domestic
Eastern China (Shanghai): 3,520-3,550 yuan ($496-500) per tonne, up 90-100 yuan per tonne
Northern China (Tangshan): 3,520 yuan per tonne, up 100 yuan per tonne
Sellers in Shanghai offered cargoes at 3,520 yuan per tonne in the morning, which was already much higher than last Friday prices.
But in the afternoon, they were motivated to ask for even higher prices with buyers placing orders steadily.
A Shanghai-based trader told Fastmarkets that HRC prices had surged over the weekend after market participants heard about production cuts in Hebei province's Tangshan city.
Local authorities ordered steel mills in several districts to cut production from May 18 until May 31 to curb air pollution.
The local...