During the week ending September 10, the Chinese domestic hot rolled coil (HRC) market has declined amid the absence of the anticipated recovery in demand. Average HRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
The main factors affecting the domestic HRC market include the decreasing trend observed in the steel futures market and the slack activity in the spot market.
Market insiders state that support from production costs is currently insufficient. Although it is rumored that domestic steel giant Baosteel may raise its list prices for October shipment, the failure of an improvement in market demand is hindering any recovery of prices. The Chinese domestic HRC market is expected to move on a soft trend in the short run, though with only a slight decline in prices likely.