Amid decreases in overall steel spot prices and in steel futures prices in China, the Chinese CRC market has witnessed increased panic, with prices falling at a faster rate than in the previous week.
The Chinese CRC market is expected to find it hard to emerge from its downtrend due to the strong imbalance between supply and demand. No obvious production cuts by steel mills have been observed. Meanwhile, amid slower economic growth in China, demand from the downstream side appears to be sluggish. Also, with the ongoing drop in steel prices, end-buyers have also become more cautious.
It is expected that the Chinese CRC market will continue its downtrend in the coming week.