During the week ending September 23, hot rolled coil (HRC) prices in the Chinese domestic market have continued their decreasing trend, while transaction activity has been at low levels. Average HRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, the ongoing declines in domestic HRC prices have not stimulated demand from downstream industries, with traders stating that only a few inquiries have been heard from downstream users. On September 22, futures prices of both rebar and iron ore in China indicated relatively significant declines, contributing to the bearish sentiment in the local HRC market. It is expected that HRC prices in the Chinese domestic market will continue their downtrend in the coming week due to the influence of several factors including sluggish demand, declining raw material prices, tight liquidity near the end of month and the approach of China's National Day Holiday (October 1-7).