During the week ending February 28, average hot rolled coil (HRC) prices in the Chinese domestic market have indicated a downward correction, while transaction activity in the overall market is now at medium levels. Average HRC prices in the local Chinese market are presented in the following table.
During the given week, average prices of HRC in the Chinese domestic market have declined. HRC inventories in the domestic market have continued to rise, exerting negative pressure on prices in the spot market. Meanwhile, as the end of the month has been approaching, some traders have been experiencing tight liquidity and have reduced prices in order to increase sales and bring in cash. On the other hand, infrastructure investment in China is expected to pick up, which will provide strong support for domestic finished steel prices and boost sentiment in the steel market. It is thought that HRC prices in China will likely move on a slight uptrend in the coming week.
| Product Name | Spec. | Quality | City | Steel Plant/Origin | Price (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Medium HRC | 5.75 mm x 1,500 mm x C | Q235B/SS400 | Shanghai | Ansteel | 3,830 | 557 | ↓30 |
| Tianjin | Ansteel | 3,830 | 557 | ↓10 | |||
| Lecong | Liuzhou Steel | 3,900 | 568 | ↓50 | |||
| Average | - | 3,853 | 561 | ↓30 | |||
| Thin HRC | 2.75 mm x 1.,250 mm x C | Q235B | Shanghai | Ansteel | 3,950 | 575 | ↓30 |
| Tianjin | Tangshan Steel | 3,880 | 565 | ↓40 | |||
| Lecong | Lianyuan Steel | 4,010 | 584 | ↓50 | |||
| Average | - | 3,946 | 574 | ↓39 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.87