Retaining its overall softness, China's hot rolled prices moved down mildly on a fluctuating trend over the past week. Despite the climbing levels of hot rolled inventories in China's leading markets, the ex-mill prices of HRC are still high.
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
HR |
5.75 mm x 1,500 mm |
Q235B |
3,667 |
-6 |
537 |
HR |
2.75 mm x 1,250 mm |
Q235B |
3,870 |
-20 |
567 |
Looking at the current situation, the Chinese hot rolled market has continued to be characterized by high inventory and low demand. During the month of August, HRC prices in the domestic market were consistently lower than the mills' ex-factory prices, putting traders at a distinct disadvantage. Generally speaking, market prices moved on a fluctuating trend throughout the past week. Following the continuous drop in HRC prices, some traders showed a willingness to make some purchases while at the same time remaining cautious as supply currently exceeds demand. On August 26 and August 27, hot rolled prices in some leading markets registered a minor rise after touching the bottom, with lowest levels of RMB 3,600/mt ($527/mt), RMB 3,620/mt ($530/mt) and RMB 3,800/mt ($556/mt) seen in Shanghai, Tianjin and Lecong in the past week.
On the mills' side, most Chinese mills have reduced their hot rolled prices during the past week, with only a few mills hiking their prices by a slight margin.
On August 25 and August 26, Rizhao Steel lowered its HRC prices by RMB 50/mt ($7/mt) on each day, with its 5.75 mm Q235 material now offered at RMB 3,550/mt ($520/mt).
On August 25, Laiwu Steel made a downward adjustment of RMB 350/mt ($51/mt) to its HRC prices, with its new price of 5.75 mm Q235 HRC standing at RMB 3,600/mt ($527/mt).
On August 26, Xinyu Steel raised its HRC prices by RMB 50/mt ($7/mt). As a result, its ex-factory price of 5.75 mm Q235 is now at RMB 4,200/mt ($615/mt).
On August 27, Jinan Steel slashed its hot rolled prices by RMB 600/mt ($88/mt), with its new price of 5.75 mm Q235 now at RMB 3,800/mt ($556/mt).
According to the latest figures, total hot rolled inventory in China's leading markets was still on the rise in the past week. For instance, hot rolled inventory in Shanghai amounted to 910,000 mt on August 27, up 4,000 mt compared with the level on August 20.
Overall, market demand is not expected to see any improvement in the short term and market inventory is likely to continue on its upward trend. On the other hand, the ex-factory prices of HRC remain high in China. Thus, the domestic hot rolled market is likely to continue its weak trend of fluctuation in the near future.