Bearish sentiment prevails in local Chinese HRC market

During the week ending January 20, average hot rolled coil (HRC) prices in the Chinese domestic market have continued to decline, indicating sharp decreases compared to the previous week, while transaction activity in the market has remained at low levels. Average HRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
 
During the given week, bearish sentiment has prevailed among market participants. New offer prices from Shandong Province-based Rizhao Steel have declined by RMB 100/mt ($16/mt), negatively impacting the domestic HRC spot market. New supplies have also been arriving in the market, increasing the pressure from the supply side. Meanwhile, increased tightness of funds is observed in the market as the Spring Festival approaches. It is expected that HRC prices in the Chinese domestic market will continue their downtrend in the coming week.