Chinese HRC market starts to soften after price increase

Tuesday, 31 January 2012 16:44:01 (GMT+3)   |  
After China's New Year holiday, the Chinese hot roll coil (HRC) markets has indicated an increase on week-on-week basis, though a slight softening has started to be seen. Average HRC prices in China can be viewed in the SteelOrbis price reports section.

In the Chinese HRC market, traders are returning to the market after the holiday and prices initially moved on an uptrend. However, market prices subsequently began to soften a little due to the scarcity of transactions in the market and also because some traders under pressure due to shortage of funds have decided to sell off stocks. Furthermore, downstream buyers are still on holiday and so demand has not yet recovered. Meanwhile, many traders are still somewhat pessimistic on the prospects for the market.

Summing up, many market players are still adopting a wait-and-see stance, while it is expected that the Chinese HRC market will fluctuate downward by a small margin in the coming seven days.


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