The price movement of Chinese HRC in last 6 days shows the continuing increase of flat products.

Although steel industry still has the problem of overcapacity, big steel mills recently increased the EWX price one after another. For example, Ansteel rised HRC products CNY 300 per tonne and CR products are up by CNY 400 per tonne, which promotes the increase of the HRC price in steel market.

Main reasons behind it are the cost push and the increased demand. In addition, the snow causes the problem of transportation which increases the iron ore price.