Chinese HR prices to remain stable

Expert believes that Chinese hot rolled steel prices may keep stable in near future.

Some factors could affect the future market price: firstly, stock level is still high in China. It is hard to clear out large quantity of over produced steels soon.

Secondly, mills have played actively to reduce their steel price in order to release pressures. Mills have announced they would not give any rebate price for traders. Thirdly, international market is still weak and keeping price vibrated.

It is foreseeable that imported steels will be increased greatly, which could make Chinese steel export more uncompetitive in the world. Chinese steel price would keep vibration slightly in short period of time and would not be inched up significantly.