The market demand has recovered recently, and the price of hot-rolled coil (HRC) in June is expected to rebound slightly. According to statistics, on May 31, China's operating rate of HRC production lines was 81.25%, increasing by 1.56% week on week.

This week, China’s steel mills' capacity utilization rate was 79.21%, decreasing by 1.34% week on week. Meanwhile, the related maintenance of the blast furnace or rolling line makes the average daily output decrease from the previous week.

In terms of social inventory, as of June 2, the HRC stocks were about 2.69 million tons, a week-on-week decrease of about 85,000 tons and a year-on-year increase of 259,000 tons.