During the week ending January 11, cold rolled coil (CRC) prices in the Chinese domestic market have followed a softening trend. Average CRC prices in the main markets in China can be viewed in the SteelOrbis price reports section.
Some domestic traders who want to maintain minimum inventory levels are still active in delivering CRC materials. Meanwhile, due to quiet activity in the market and the wait-and-see stance adopted by buyers, some traders have already exited the market ahead of the Spring Festival holiday.
Lian Pingyi, chief economist of China's Bank of Communications, has stated it is expected to be a little easier to obtain credit in China in 2012 as compared to 2011. Loans issued in December 2011 exceeded expectations due the relevant government measures, while domestic banks also had more money to lend due to increased deposits.
Overall, with the approach of the Chinese Spring Festival holiday, it is expected that the Chinese CRC market will follow a slight downtrend in the coming week.