During the week ending July 16, the Chinese domestic cold rolled coil (CRC) market has indicated a slight downtrend, while transaction activity has been at decent levels. Average CRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, traders have been willing to negotiate on their offer prices, with transaction activity at the low end of the market price range being good. However, traders who have insisted on keeping their prices stable have been having greater difficulty in selling materials. The domestic CRC market has been negatively affected by slower demand from downstream industries like the automotive and home appliance sectors which have entered their offseason, while at the same time market participants are unwilling to build up inventories as they lack confidence regarding the future prospects for the market. On the other hand, the Chinese economy has been showing signs of stabilization and recovery, which will provide some support for the steel markets. It is thought that CRC prices in the Chinese domestic market will follow a stable trend in the coming week, though the possibility there will be some slight downticks is not excluded.