During the past week the Chinese hot rolled coil (HRC) market fluctuated in a downward direction, in a context of low transaction volumes and a less optimistic market outlook. The average prices of HRC in the main domestic regions are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
HR |
5.75 mm x 1,500 mm |
Q235B |
4,320 |
-13 |
651 |
-2 |
HR |
2.75 mm x 1,250 mm |
Q235B |
4,437 |
-20 |
668 |
-3 |
On November 23, Q235/S400 5.75 mm hot rolled coil prices stand at RMB 4,300/mt ($648/mt), RMB 4,310/mt ($649/mt) and RMB 4,350/mt ($655/mt) respectively in the Shanghai, Tianjin and Lecong markets. In addition, Q235 2.75 mm HRC stands at RMB 4,380/mt ($660/mt), RMB 4,380/mt ($660/mt) and RMB 4,550/mt ($685/mt) respectively in the abovementioned markets. All the above prices include 17 percent VAT (US$1 = RMB 6.64).
Traders have reported that end-user demand for HRC has not been great. Some traders have been seeking to replenish their inventories. Other traders have tentatively lowered their prices in order to boost sales. However, there has not been any improvement in the market transaction situation, as prices have not yet reached the level of buyers' price idea. Also, in general traders have not been very eager to purchase as there appears to be no obvious support for price increases and high profit margins in the future. Most traders are maintaining a wait-and-see stance.
Domestic steelmakers Wuhan Iron and Steel Corporation (WISCO) and Angang Steel published their price policies for December during the past week. The HRC price of WISCO dropped by RMB 150/mt ($22/mt), while HRC prices of Angang Steel decreased by RMB 200/mt ($30/mt). Steelmakers are not optimistic about the future.
On November 19, aggregate hot rolled coil inventory in the main Chinese cities was 4.696 million mt, up 55,500 mt from November 12.
For the coming week, it is expected that the Chinese HRC market will trend sideways.