The price of hot-rolled coil (HRC) in China's domestic market was slightly higher, but futures prices were volatile. As optimism over the promise of the Chinese authority's stimulus policies fades, market participants' focus has shifted back to basic needs, with an unclear future trend.

At present, the demand for HRC is stable because the manufacturing industry's needs are less affected by seasonality, and HRC has better margins compared to other building steels. On the other hand, China's export index of HRC fell slightly, prompting buyers to further lower bargain prices.

As the largest destination country for Chinese HRC, Vietnamese buyers’ current bids have been lower than last week. Traders said that if large mills have actual orders, export prices will be more flexible.

Local distributors mentioned that with the support of relatively low inventory and solid demand, HRC futures prices will still fluctuate in the short term, due to low willingness to replenish inventory in winter.