Recently, China's National Development and Reform Commission announced that it would further strengthen market expectations for incentive measures, prompting the price of hot-rolled coil (HRC) in the Chinese market to rise continuously.

It was reported that spot and futures prices rose for the second consecutive trading day, supported by the Chinese government's stimulus package. The HRC price has been pushed up with higher prices of rebar and raw materials such as coke, coking coal, and iron ore.

However, the export market of Chinese steel mills has been sluggish since October, mainly because overseas buyers believe that current offers are too high, and the mills are unwilling to lower prices.

Market participants analyze that prices will continue to fluctuate in the short term. Due to expectations of bullish policies, the current balance of supply and demand remains stable, and inventories are still declining.