Hot-rolled coil prices across China's domestic market moved higher on Wednesday June 30, supported by futures prices that are underpinned by expectations of lower production for the rest of this year.
Domestic
Eastern China (Shanghai): 5,420-5,460 yuan ($839-845) per tonne, up by 10-30 yuan per tonne from 5,390-5,450 yuan.
The most-traded HRC contract on the Shanghai Futures Exchange resumed its rebound on Wednesday, jumping more than 100 yuan or 2% from the prior day. Market sentiment in the futures market is supported by growing expectations of production cuts in the second half of the year in China.
Steel mills in the eastern province of Anhui have been ordered to keep crude steel production this year no higher than in 2020, sources said. Authorities in the neighboring province, Jiangsu, has also reportedly imposed a similar requirement on steelmakers, but there has been no official announcement of this yet.
Mills will have to cut their crude steel production...