During the past week the Chinese hot rolled coil (HRC) market has continued to fluctuate in a downward direction. Traders have lowered their prices in order to attract more business. The transaction situation in what is traditionally the busy season is not so great.
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 |
4,237 |
-60 |
633 |
-9 |
HR |
2.75 mm x 1,250 mm |
Q235B |
4,383 |
-44 |
655 |
-7 |
On September 28, Q235/S400 5.75 mm hot rolled coil (HRC) prices stand at RMB 4,190/mt ($626/mt), RMB 4,220/mt ($631/mt) and RMB 4,300/mt ($643/mt) respectively in the Shanghai, Tianjin and Lecong markets. In addition, Q235 2.75 mm HRC stands at RMB 4,350/mt ($650/mt), RMB 4,300/mt ($643/mt) and RMB 4,500/mt ($673/mt) respectively in the abovementioned markets. All the above prices include 17 percent VAT (US$1 = RMB 6.69).
During the past week, because the transaction situation is not good, many traders are worried about the prospects for the market after the National Day holiday. Also, approaching the end of the month, some traders need to bring in cash and so they have started to sell at lower prices. All these factors have caused prices in the Chinese HRC market to drop. Downstream buyers are currently maintaining a wait-and-see stance. Most of them are buying just enough to supply their needs. Some traders were thinking there could be a rebound after the current price drop; however, fewer traders are now optimistic about the prospects for a rebound.
In general, inventory in the main Chinese HRC markets has increased slightly. On September 25, aggregate hot rolled coil inventory in the main Chinese cities was 4.6535 million mt, up 79,600 mt week on week. The region with the greatest increase was the northern Chinese market. Inventory in Shanghai was 1,854,390 mt, up 24,380 mt week on week.