Chinese CRC market starts to soften due to weak demand

During the week ending February 1, the Chinese cold rolled coil (CRC) market initially trended up, but subsequently softened due to weak demand. Average CRC prices in China can be viewed in the SteelOrbis price reports section.
 
Upon the return from the Spring Festival holiday, CRC prices in China's main markets first showed strong upward momentum; however, due to weak demand in the market, prices later indicated a small drop. Traders have different views on the prospects for the market and accordingly some variation is observed in offer levels.
                                                                                                                           
Downstream companies have not yet fully resumed production activities, and so demand is still somewhat slow. Meanwhile, some traders are maintaining a wait-and-see approach to market activity. It is expected that China's CRC market will gain clarity after the mills issue their new price lists.