With the Labor Day holiday approaching and with traders under increasing financial pressure coming up to the end of April, lower offers have been heard from some traders in the CRC market as they seek to bring in funds. Furthermore, some traders have been selling their CRC materials at lower prices in order to reduce the high inventory levels which they had built up before the Chinese New Year. In addition, traders are now booking fewer materials from steelmakers. In the meantime, overcapacity still exists while demand from downstream users remains sluggish.
In steelmakers' pricing policies issued for May delivery, it is observed that CRC products have been cut by larger margins than HRC products.
Overall, it is thought that CRC prices in the Chinese domestic market will continue their slight downtrend in the coming week.