Dragged down by falling hot rolled coil (HRC) prices, CRC prices in the Chinese domestic market have moved down over the past week, negatively affecting traders' confidence as regards the prospects for the market in the coming period. Although major domestic producer Baosteel has raised its CRC prices by RMB 150-200/mt ($24-32/mt) for April delivery, market participants continue to lack optimism. After the Chinese New Year holiday, the absence of significant improvements in demand, added to the excessively rapid price rises before the holiday, has exerted strong pressure on CRC prices in the spot market. Moreover, many traders have debts to pay before the end of the first quarter, causing them to sell at lower prices in order to bring in funds. Meanwhile, hopes for the announcement of stimulus measures during China's National People's Congress may be in vain.
Overall, it is expected that CRC prices in the Chinese domestic market will continue their declining trend in the coming week.