During the week ending August 26, hot rolled coil (HRC) prices in the Chinese domestic market have continued to follow a downtrend, while transaction activity has remained slack. Average HRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, the ongoing downtrend in HRC futures prices, the slowdown in purchasing activity by downstream HRC users and the soft trend of raw material prices have all contributed to further declines in the domestic HRC market. Currently, HRC traders mostly hold a pessimistic view of the future prospects for the market. Meanwhile, liquidity in the market is tighter coming towards the end of the month. It is expected that HRC prices in the Chinese domestic market will continue their downward movement in the coming week amid the ongoing bearish sentiment.