MONTHLY: China HRC prices to face modest decline in May

As China enters a traditional off-month for steel consumption in May, hot-rolled coil (HRC) prices are showing clear signs of weakening. However, the decline may be gradual in the short term, with moderate supply growth and relatively resilient demand helping to limit the severity of the price drop, Mysteel's latest monthly report on the commodity suggests.

In April, sentiment throughout China's ferrous market deteriorated as more Chinese exports, including those of steel, were penalized by higher tariffs. Domestic prices of major ferrous products including rebar and iron ore declined broadly, with HRC also coming under pressure. For May, China's spot price of Q235B 4.75mm HRC in