Recently, driven by stronger iron ore and coking coal prices, coupled with the contraction of low-priced hot-rolled coil (HRC) supply in China, the domestic HRC price has rebounded from the bottom, indicating a strengthening signal.

Following the stabilization of HRC price, HGI prices have also risen accordingly, and buyers' restocking demand has subsequently increased. Market participants believe that with a stable HRC price and low inventory at present, HGI prices will continue to recover. In addition, upstream steel mills are not only expanding production cuts but also maintaining their current valid offers, and the mentioned low prices may be cancelled at any time.