The ongoing decreases in China's local hot rolled coil (HRC) prices have exerted a negative impact on the price trend in the domestic CRC market. In addition, some local CRC traders have been increasingly willing to negotiate on prices as the end of the month approaches as they seek to bring in funds.
It is expected that the Chinese domestic CRC market will move down in the short term. However, the decrease margin may be limited as high-priced CRC materials for February and March delivery could provide some support for CRC prices in the spot market. Moreover, demand from downstream users is likely to see improvements when the weather becomes warmer and as more and more construction sites resume operations.