In the past week, hot rolled coil (HRC) prices in the Chinese market have seen minor fluctuations. The 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 |
4,833 |
+16 |
751 |
+2 |
HR |
2.75 mm x 1,250 mm |
Q235B |
4,860 |
-3 |
755 |
-0.4 |
As of July 26, the prices of Q235/S400 5.75 mm HRC in Shanghai, Tianjin and Lecong are respectively RMB 4,820/mt ($748mt), RMB 4,730/mt ($734/mt) and RMB 4,950/mt ($769/mt). For Q235 2.75 mm HRC, prices stand at RMB 4,810/mt ($747/mt), RMB 4,760/mt ($739/mt) and RMB 5,010/mt ($778/mt) in the abovementioned cities. All prices include 17 percent VAT ($1 = RMB 6.44).
In the past week, supported by strong increases in futures prices, HRC prices in China's main markets have slightly increased in some markets, though slightly decreasing in other markets. Market transaction activity has improved, though there has been no change in end-user demand. The market situation is confusing; the price policies of mills show variation - some have increased their prices, while others have decreased their prices. Shandong-based Rizhao Steel and Guangxi-based Liuzhou Steel have increased their HRC prices by RMB 30/mt ($4/mt). Beijing-based Shougang Steel, Liaoning-based Benxi Steel and Beitai Iron and Steel have announced unchanged prices for August, while Liaoning-based Anshan Iron and Steel has decreased its prices by RMB 50/mt ($7/mt).
As for inventory, HRC inventory in China's main markets has rebounded slightly, with the first increase seen in Shanghai in the past nine weeks. On July 22, aggregate HRC inventory in China's main markets totaled 4.26588 million mt, an increase of 83,180 mt compared with the previous week, while inventory in Shanghai stood at 1.48535 million mt, up 11,000 mt week on week.
Summing up, it is expected that China's HRC market will trend sideways in the coming week.