Asia's hot-rolled coils (HRC) remains bumpy within a range, and China's HRC has pulled back after a surge. However, the appreciation of the RMB has made China's HRC price at a high level.

China's steel prices have risen sharply in the past half month, mainly due to policy dividends such as capital release and policy support. China's HRC rising trend transmitted to the outside, and Asian HRC also grows. The increase in export sales is even more significant than domestic sales because of the additional benefits of RMB appreciation.

The RMB is currently rising to 7.25-7.26 against the US dollar. Although the downstream industry still resists the high prices, steel mills say that the downstream industry must be mentally prepared under high costs. At the same time, the European and American markets have become more accepting of HRC price increases in Asia, strengthening the intensity and confidence of steel mills in price increases in Asia