China still lacks a clear direction

The general view among regional operators is that the Chinese market remains weak, with no clear signs of recovery. However, a Chinese trader told WBR that the market may be entering a period of greater stability after several weeks of downward pressure. “The market seems to be improving, or at least it has stopped falling,” the source said. According to the trader, one factor behind this shift is that several companies facing financial difficulties have managed to stabilize their situation, reducing the need to aggressively liquidate inventories. In addition, there is a growing perception that Brazil’s 1.1 million-ton quota could be exhausted this month. “It appears that Brazil’s quota will be filled with June shipments,” the source added.