During the week ending November 19, prices in the Chinese domestic cold rolled coil (CRC) market have indicated a slight downward movement, while transaction activity has remained at poor levels. Average CRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, Chinese steel giant Baosteel has issued its prices for December delivery, cutting its CRC prices by RMB 100/mt ($16/mt), with this reduction exerting a negative impact on the domestic CRC market. Other major steelmakers, including Shougang and Ansteel, have followed Baosteel's example and cut their prices also, reflecting these steelmakers' pessimistic view of the future prospects for the market. In addition, traders are also more willing to sell at lower prices in order to stimulate sales and bring in funds. Meanwhile, demand for CRC in the Chinese domestic market has slackened with the arrival of colder weather. At the same time, iron ore prices have indicated a sharp decline and finished steel futures prices have also indicated significant decreases. In this overall context, it is expected that CRC prices in the Chinese domestic market will continue their downward movement in the coming week.