Given the optimistic expectations as regards future demand, the Chinese hot rolled market moved on a rising trend over the past week. However, as consumption of inventory remains slow, the market still faces relatively strong pressure.
Product name | Specification | Category | Average price(RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
HR | 5.75 mm x 1,500 mm | Q235B | 3,320 | +77 | 487 |
HR | 2.75 mm x 1,250 mm | Q235B | 3,453 | +63 | 506 |
China's domestic hot rolled market posted an overall upward trend throughout the past week, apart from the decline recorded in prices of hot rolled coils of thicknesses less than 3.75 mm in some individual markets. Generally speaking, several factors have contributed to the ascension of the market in the past week. Firstly, most market players have been optimistic as regards the prospects for market demand after the May Day holiday; secondly, given the current low market levels, many traders have been inclined to increase their stocks; thirdly, despite the relatively high inventory levels, supplies of 5.75 mm x 1,500 mm x C and other common specifications decreased as a result of limited new arrivals and also due to market consumption.
Last week, Hebei Steel Group released its latest prices for May, making a downward adjustment of RMB 150/mt ($22/mt) to its hot rolled prices. Thus, the producer's new price of 5.75 mm x 1,500 mm Q235 is now at RMB 3,200/mt ($469/mt). Meanwhile, Lianyuan Steel lowered its HRC prices by RMB 100/mt ($15/mt), with the new price of 5.75 mm Q235 at RMB 3,300/mt ($484/mt).
Over the past week very little improvement has been seen in China's export market for hot rolled steel products. On the import side, quotations of overseas materials have maintained their stability on the whole in recent days. Nevertheless, Chinese purchasers have still seemed to lack interest in import activity, due to the uncertain future of the domestic market and also the slim profit margin.