During the week ending July 24, the Chinese hot rolled coil (HRC) market has continued to see an acceleration of its downward trend. Average prices of HRC in the Chinese domestic market can be viewed in the SteelOrbis price reports section.
Traders in the Chinese HRC market are pessimistic as regards the future prospects for the market. They have been reducing or cancelling their purchases, while they are seeking to conclude further sales. Traders are currently under pressure from issues such as liquidity shortages.
Amid ongoing low demand, mills are expected to come under increased pressure from their inventories. Against the background of the increased imbalance between supply and demand, the Chinese HRC market is expected to decline further in the coming week.