Chinese hot rolled coil (HRC) market prices increased in the first week after the National Day holiday. While a decent volume of transactions between traders was observed, many traders remain cautious about the future maket.
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 | 4,317 | +34 | 647 | +3 |
HR | 2.75 mm x 1,250 mm | Q235B | 4,423 | +23 | 663 | +5 |
On Oct 12, Q235/S400 5.75 mm hot rolled coil (HRC) prices stand at RMB 4,270/mt ($640/mt), RMB 4,320/mt ($648/mt) and RMB 4,360/mt ($654/mt) respectively in the Shanghai, Tianjin and Lecong markets. In addition, Q235 2.75 mm HRC stands at RMB 4,400/mt ($660/mt), RMB 4,350/mt ($652/mt) and RMB 4,520/mt ($678/mt) respectively in the abovementioned markets. All the above prices include 17 percent VAT (US$1 = RMB 6.67).
During the past week, inventory in the main Chinese hot rolled coil markets kept on increasing. On October 8, aggregate hot rolled coil inventory in the main Chinese cities was 4.7601 million mt, up 106,600 mt week on week. The region with the greatest increase was eastern China, followed by southern China. Inventory in Shanghai was 1,884,630 mt, up 30,240 mt week on week.
As prices increased after the National Day holiday, many optimistic traders purchased materials at low prices, boosting the transaction volume in the market. Despite low liquidity, because of the limited supply arrivals after the holiday and traders' expectations for price increases, the Chinese HRC market started to fluctuate in an upward direction. Many traders have said they expect the price rebound may not last long.
In general, the Chinese HRC market is expected to fluctuate upward in the coming week.