During the week ending August 28, hot rolled coil (HRC) prices in the domestic market of China have continued to decline. Average HRC prices in the domestic market can be viewed in the SteelOrbis price reports section.
In the given period, overall transaction activity in the Chinese steel market seems unsatisfactory. Amid the credit crisis in the domestic steel industry, traders and downstream sectors are very cautious about concluding purchases. With many mills announcing reduced HRC prices for September shipment, market players are now more pessimistic on the outlook for the domestic HRC market. Meanwhile, despite the overhaul plans of domestic HRC mills, HRC production capacity in China is currently still above normal levels.
It is expected that the Chinese HRC market will continue its weak trend in the short term.