During the past week China's domestic hot rolled market first continued its sliding movement before seeing a minor rebound starting from August 21. Following their previous rapid decline, hot rolled market prices in China are now lower than mills' ex-factory price levels - a situation which has contributed to a certain extent to the rebound of market prices. However, in the absence of any obvious positive factors in the current market, most traders are not optimistic as regards the prospects for the market in the coming period.
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
HR |
5.75 mm x 1,500 mm |
Q235B |
3,673 |
-110 |
538 |
HR |
2.75 mm x 1,250 mm |
Q235B |
3,890 |
-137 |
570 |
On August 18, Taishan Steel lowered its hot rolled prices by RMB 450/mt ($66/mt), with its new price of 5.75 mm Q235 HRC standing at RMB 4,050/mt ($593/mt).
Meanwhile, also on August 18, Liuzhou Steel made a downward adjustment of RMB 360/mt ($53/mt) to its HRC prices, with its 5.75 mm Q235 material now offered at RMB 4,400/mt ($644/mt).
On August 19, Rizhao Steel reduced its HRC prices by RMB 100/mt ($15/mt). As a result, its ex-factory price of 5.75 mm Q235 is now at RMB 3,550/mt ($520/mt).
On August 24, Shougang announced its ex-factory flats prices for September, with its HRC prices remaining constant at August levels. Thus, 5.5 mm x 1,500 mm Q235 HRC is still offered at RMB 4,210/mt ($616/mt).
All the above prices include 17 percent VAT. ($1 = RMB 6.83)
Overall, while Chinese mills have increased their capacity utilization rates, market demand has appeared quite flat. It is reported that hot rolled inventory has risen considerably in recent days due to the increased shipments coming from the mills.
According to the latest figures, total hot rolled inventory in China's leading markets was still on the rise in the past week. For instance, hot rolled inventory in Shanghai amounted to 906,000 mt on August 20, up 17,000 mt compared with the level on August 14.
As regards the future trend, most players anticpate that China's hot rolled market will move further down in the short term in the absence of any obvious positive factor in the current market.