Trading on the London Metal Exchange's (LME) fob China hot-rolled coil (HRC) contract has surged this month.
Falling Chinese HRC prices, driven by weak domestic and export demand, have spurred increased activity.
Volumes are set to exceed 100,000t, the highest since 2020. Despite new lows in physical prices, Chinese HRC exports doubled in the first half of 2024 compared to last year. Market participants expect increased volatility due to potential export restrictions and growing global demand.
A wider range of market participants, including major Chinese exporters, European and Singaporean steel merchants, and industrial groups in Southeast Asia and the Middle East, are showing interest in the LME contract.
