CHINA HRC: Futures surge on news of targeted RRR cut

China’s hot-rolled coil exporters were forced to cut prices on Friday March 13 amid low demand, despite a largely stable domestic market that has been bolstered by a futures surge on news of a cut in China's required reserve ratio (RRR).

Domestic
Eastern China (Shanghai): 3,500-3,510 yuan ($500-501) per tonne, narrowing downward by 10 yuan per tonne
Northern China (Tangshan): 3,320-3,330 yuan per tonne, down 10 yuan per tonne
A Shanghai-based trader said that trading on Friday overall was “merely moderate”, but that prices had stayed largely stable because of the surge in futures in the afternoon. 

Market participants said the futures jump was mainly in anticipation of the Chinese government cutting the required reserve ratio (RRR) - a move designed to free up cash reserves for lending to...

Published

Miranda Song

March 13, 2020

10:34 GMT

Shanghai