In the past week, the Chinese hot rolled coil (HRC) market has been trending downward amid lackluster market activity, with an obvious increase observed in the downtrend. The average prices in the main hot rolled coil markets in China are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
HR |
5.75 mm x 1,500 mm |
Q235B |
4,717 |
-90 |
725 |
-14 |
HR |
2.75 mm x 1,250 mm |
Q235B |
4,807 |
-70 |
738 |
-11 |
As of June 22, the prices of Q235/S400 5.75 mm hot rolled coil in Shanghai, Tianjin and Lecong are respectively RMB 4,700/mt ($722mt), RMB 4,600/mt ($707/mt) and RMB 4,850/mt ($745/mt). For Q235 2.75 mm HRC, prices are at RMB 4,800/mt ($737/mt), RMB 4,640/mt ($713/mt) and RMB 4,980/mt ($765/mt) in the above mentioned cities. All prices include 17 percent VAT ($1 = RMB 6.51)
As of June 10, aggregate HRC inventory in the main Chinese cities totaled 4.27471 million mt, decreasing by 2.638 million mt as compared to the week before. Specifically, HRC inventory in Shanghai on the same date was 1.50227 million mt, down 14,100 mt week on week.
The price of HRC has further decreased in the domestic market, due to the fall in prices of raw materials, and in particular lower semi-finished steel prices Also, the major Chinese mills have decreased their prices, while market demand is weak. The raining weather in China has also sparked efforts to try and sell off materials. Following Baosteel, Anshan Steel has cut its HRC price by RMB 80/mt ($12/mt), while WISCO has reduced its price by RMB 100/mt ($15/mt).
Summing up, the market for hot rolled coil in China is expected to continue its downward trend in the coming week.