Keen demand to support Chinese HRN price in September

摘要

Export quotations for Chinese SS400 grade HR coils have grown by $22/t, to $711/t FOB in August due to growing demand from local and foreign buyers in the second half of July an early August. Better demand for Chinese products will promote prices. Stocks will increase in early September, but local traders will manage to optimize inventories as early as in the first half of September on more intense business activity in the southern provinces of China and stably high demand in the central and northern regions constituting 90% of the total volume of domestic HR coil sales which will persist till the second half of October. Besides, the stockists in SE Asia will boost purchases, as current stocks are not enough to meet growing requirements of end consumers. In October, demand in the consuming industries will stay firm, but the stockists will be focused on distributing and will not be ready to enlarge purchases, thus predetermining a gradual downturn in mills. quotations.