During the week ending November 27, hot rolled coil (HRC) prices in the Chinese domestic market have continued to move down. Average HRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
While market demand is still lackluster in China, local HRC traders have become more eager in their search for orders and some have lowered their offers in order to attract buyers' interest. However, the market has remained quiet, with price decreases failing to boost activity levels.
According to China's National Development and Reform Commission (NDRC), in October this year the country's crude steel output rose by two percent month on month and by six percent year on year. Meanwhile, rolled steel production in the given month was up 11.7 percent year on year. This increased steel production may exert downward pressure on the domestic HRC market in the coming period.
Amid expectations of an increase in new arrivals, it is expected that prices of HRC will continue to drop down in the local Chinese market.