Pessimism prevails in Chinese CRC market

Wednesday, 16 May 2012 16:46:13 (GMT+3)   |  
During the week ending May 16, Chinese cold rolled coil (CRC) prices have continued to trend down, while the market atmosphere is increasingly characterized by pessimism. Average CRC prices in the main Chinese cities can be viewed in the SteelOrbis price reports section.

Due to the ongoing price decreases, end-users of CRC have reduced their purchasing activities, while CRC traders are anxious to avoid the risks involved in stock replenishment. Traders state that CRC prices in China may decline below RMB 4,800/mt ($759/mt). Meanwhile, the lowering of the deposit reserve ratio by the Chinese central bank has not had an obvious impact on the steel market yet. It is expected that the Chinese CRC market will maintain its downward movement in the coming week.


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