In the past week, the Chinese hot rolled coil (HRC) market has indicated slight 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 |
4,817 |
-3 |
755 |
-0.47 |
HR |
2.75 mm x 1,250 mm |
Q235B |
4,893 |
+6 |
767 |
+1 |
As of September 7, the prices of Q235/S400 5.75 mm HRC in Shanghai, Tianjin and Lecong are respectively RMB 4,750/mt ($745mt), RMB 4,920/mt ($771/mt) and RMB 4,860/mt ($762/mt). For Q235 2.75 mm HRC, prices stand at RMB 4,860/mt ($762/mt), RMB 4,800/mt ($752/mt) and RMB 5,020/mt ($787/mt) in the abovementioned cities. All prices include 17 percent VAT ($1 = RMB 6.38).
In the main Chinese HRC markets, in the past week downstream demand has continued to be low. As the Chinese government has tightened its monetary policy, HRC traders now tend more to wait and observe the market changes.
In the main Chinese HRC markets, aggregate inventory totals 4.30077 million mt, indicating a decrease of 3,370 mt week on week, while HRC inventory in the Shanghai market totals 1.54898 million mt, up 7,070 mt week on week.
Impacted by low downstream demand, recently some mills' prices have decreased by a certain degree. Benxi Steel Group Corporation, Rizhao Steel, Ningbo Steel and Liuzhou Steel have either decreased their HRC prices or kept them stable. On September 5, Liuzhou Steel decreased its HRC prices by RMB 60/mt (about $9), with its 5.5 mm Q235 HRC price currently at RMB 5,580/mt (about $874/mt).
Summing up, it is expected that the Chinese HRC market will trend sideways in the coming week.