During the past week the Chinese hot rolled coil (HRC) market has continued its downward fluctuating movement of the previous week.
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 |
4,233 |
-37 |
635 |
-6 |
HR |
2.75 mm x 1,250 mm |
Q235B |
4,353 |
-34 |
653 |
-5 |
On October 26, Q235/S400 5.75 mm hot rolled coil (HRC) prices stand at RMB 4,220/mt ($633/mt), RMB 4,240/mt ($636/mt) and RMB 4,240/mt ($636/mt) respectively in the Shanghai, Tianjin and Lecong markets. In addition, Q235 2.75 mm HRC stands at RMB 4,350/mt ($652/mt), RMB 4,280/mt ($642/mt) and RMB 4,430/mt ($664/mt) respectively in the abovementioned markets. All the above prices include 17 percent VAT (US$1 = RMB 6.67).
During the past week, Chinese HRC market players expected HRC prices to increase. However, the wait-and-see policy of end-users, poor general demand and the need of some small and medium traders to sell products for cash towards the end of the months all contributed to the ongoing decline in market prices.
Some traders have remarked that in recent months domestic HRC prices have been fluctuating within a small price range, with no great price swings seen, In this context, they said, it is hard for traders to predict the market trend, and so most traders prefer to follow a wait-and-see approach for the time being.
HRC inventory in the main markets in China has in general decreased lately. On October 22, aggregate hot rolled coil inventory in the main Chinese cities was 4.72 million mt, down 17,200 mt week on week. Inventory in Shanghai on the same date was 1,906,050 mt, up 14,000 mt week on week.
It expected that the Chinese HRC market will see slight fluctuations in the coming week.