Can "Trade-In" help CRC steel? A price gap defense battle under policy benefits

Since the release of the "Action Plan for Promoting Large-Scale Equipment Upgrades and Consumer Goods Trade-In" by relevant government departments in March 2024, sales of new energy vehicles and smart home appliances have shown significant growth, providing additional demand for CRC.

This surge in demand has resulted in both volume and price increases for CRC, while simultaneously widening the price gap between HRC and CRC. As of April 17, the CRC-HRC spread in the domestic market stands at Yuan 643/tonne. This article will analyze the price gap, inventory, and consumption