During the past week, with most Chinese steelmakers publishing increased prices, domestic hot rolled coil (HRC) prices in China continued their upward trend. 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 |
4,510 |
+73 |
678 |
+11 |
HR |
2.75 mm x 1,250 mm |
Q235B |
4,610 |
+57 |
693 |
+9 |
On December 21, Q235/S400 5.75 mm hot rolled coil (HRC) prices stand at RMB 4,450/mt ($669/mt), RMB 4,500/mt ($677/mt) and RMB 4,580/mt ($689/mt) respectively in the Shanghai, Tianjin and Lecong markets. In addition, Q235 2.75 mm HRC stands at RMB 4,580/mt ($689/mt), RMB 4,550/mt ($684/mt) and RMB 4,700/mt ($707/mt) respectively in the abovementioned markets. All the above prices include 17 percent VAT (US$1 = RMB 6.65).
On December 17, aggregate hot rolled coil inventory in the main Chinese cities was 4.5133 million mt, down 44,200 mt week on week. Market inventory registered the strongest decrease in eastern China. Inventory in Shanghai on December 17 was 1,819,060 mt, down 8,470 mt week on week.
During the past week, major Chinese steelmakers published their January prices, with most of them increasing their price levels. WISCO, Baosteel and Angang Steel increased their HRC ex-mill prices by RMB 100-260/mt ($15-29/mt).
The steel mills' strong price increases have influenced the market trend. Considering the higher costs of supplies in the future, traders are not eager to conclude sales at present. Due to the sufficient capital supply anticipated in the New Year, some traders expect HRC prices will continue to increase. With sellers in the market delaying sales, supplies to the market have slowed down and this has provided support for the rising market trend.
For the coming week, China's HRC market is expected to be characterized by slight fluctuations.