During the week ending July 10, the Chinese hot rolled coil (HRC) market has continued to follow a downward trend. Average prices of HRC in the Chinese domestic market can be viewed in the SteelOrbis price reports section.
While traders may be willing to negotiate on actual deals amid the current weak demand, there are still few inquiries heard from customers. However, some market players still anticipate a new round of purchasing activity given the lower prices in the market.
As regards the awaited new price policy of major Chinese steel giant Baosteel, a further slight downward adjustment in prices is generally anticipated, while some players hope the steelmaker will keep its quotations stable in order not to damage confidence in the market.
Amid ongoing lackluster demand, traders have been inclined to sell off their inventories, and this has been partly responsible for the recent unexpected significant decreases in prices. It is thought that the Chinese HRC market will continue to decline in the coming week, though at a slower pace.