During the week ending May 13, hot rolled coil (HRC) prices in the Chinese domestic market have indicated slight downticks, while transaction activity has remained at low levels. Average HRC prices in the local Chinese market can be viewed in the SteelOrbis price reports
During the given week, HRC demand in the Chinese domestic market from downstream industries has been slack, with buyers purchasing only in line with their needs. In addition, some traders have been short of funds and so they have been placing far fewer orders. Currently, some tightness on the supply side is seen as regards thick specifications of HRC.
Baosteel has lowered its HRC prices for June shipment, exerting a negative impact on HRC prices in the Chinese domestic market, though low inventory in the spot market could provide a certain degree of support for HRC prices. However, demand for HRC appears unlikely to indicate any improvement. It is expected that HRC prices in the Chinese domestic market will continue their slight downtrend in the coming week.