During the past week Chinese hot rolled coil (HRC) market fluctuated in a downward direction. As of October 19, average HRC prices in the main markets in China 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 |
4,270 |
-47 |
643 |
-7 |
HR |
2.75 mm x 1,250 mm |
Q235B |
4,387 |
-36 |
661 |
-5 |
On Oct 19, Q235/S400 5.75 mm hot rolled coil (HRC) prices stand at RMB 4,230/mt ($637/mt), RMB 4,280/mt ($645/mt) and RMB 4,300/mt ($648/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 4,330/mt ($652/mt) and RMB 4,450/mt ($670/mt) respectively in the abovementioned markets. All the above prices include 17 percent VAT (US$1 = RMB 6.64).
At the beginning of the past week, influenced by the domestic steel futures market, HRC prices in the Chinese market increased to a certain degree. However, influenced by the weak transaction volume, towards the end of the past week traders began to lower their offer prices and general market prices started to fluctuate downward.
There were few new arrivals in the past week and HRC inventories in the major markets in China generally decreased. On October 15, aggregate hot rolled coil inventory in the main Chinese cities was 4.7372 million mt, down 22,900 mt week on week. The region with the greatest decrease was the eastern Chinese market. However, inventory in Shanghai rose to 1,892,050 mt, up 7,420 mt week on week.
As regards the coming period, traders expect a movement in supplies from the northern areas to the south may be seen. Small and medium-size cities are not expected to increase inventories for the winter as their inventory levels are already high. Most traders think that the Chinese HRC market may fluctuate downward in the fourth quarter.