During the past week the Chinese hot rolled coil (HRC) market has continued to increase. On January 11, 2011, 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 |
4,653 |
+113 |
703 |
+17 |
HR |
2.75 mm x 1,250 mm |
Q235B |
4,783 |
+93 |
723 |
+14 |
On January 11, Q235/S400 5.75 mm hot rolled coil (HRC) prices stand at RMB 4,600/mt ($695/mt), RMB 4,630/mt ($699/mt) and RMB 4,730/mt ($715/mt) respectively in the Shanghai, Tianjin and Lecong markets. In addition, Q235 2.75 mm HRC stands at RMB 4,820/mt ($728/mt), RMB 4,680/mt ($707/mt) and RMB 4,850/mt ($733/mt) respectively in the abovementioned markets. All the above prices include 17 percent VAT (US$1 = RMB 6.62).
During the past week, Chinese HRC market prices kept on increasing. However, end-user demand has not been good, with most transactions being concluded between traders. On January 11, Baosteel published its prices for February deliveries, with its ex-mill prices of common carbon HRC up by RMB 100/mt ($15/mt). Domestic steelmakers Angang Steel, Benxi Steel as well as Wuhan Iron and Steel (WISCO) are all due to publish new prices. Most traders expect that prices will move up steadily in the coming period. The higher ex-mill costs are expected to exert an influence on HRC prices in the domestic market.
Deliveries from mills as well as traders' inventory levels have been on the low side, and these factors have also provided support for prices. Some traders with small inventories and sufficient cash have delayed their sales of 4.75-7.5 mm HRC products. Traders in general have not been inclined to sell materials at low prices.
Generally speaking, most traders are optimistic about the future market trend ahead of the Chinese New Year holiday. For the coming period, Chinese domestic HRC prices are expected to register steady upward movement.