Market participants were expecting domestic demand to recover gradually with more downstream industries slowly restarting their operations following the coronavirus-induced extended Lunar New Year holiday.
The depreciation of the Chinese yuan was another factor that is boosting the competitiveness of Chinese steel exports, which are typically settled in dollars.
The Chinese currency was pegged at 7.0232 yuan per $1 on February 25, compared with 6.9826 yuan to $1 on February 18, according to China’s State Administration of Foreign Exchange.
CRC and HDG prices tracked gains in the upstream hot-rolled coil market, where prices have rebounded since plunging to a year-to-date low in the middle of last week.
Fastmarkets’ steel HRC index export, fob...