In the past week, the Chinese hot rolled coil (HRC) market has moved sideways, though with some 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 |
4,220 |
+20 |
668 |
+3 |
HR |
2.75 mm x 1,250 mm |
Q235B |
4,430 |
-3 |
701 |
-0.47 |
As of November 1, the prices of Q235/S400 5.75 mm HRC in Shanghai, Tianjin and Lecong are respectively RMB 4,150/mt ($657/mt), RMB 4,230/mt ($669mt) and RMB 4,280/mt ($677/mt). For Q235 2.75 mm HRC, prices stand at RMB 4,400/mt ($696/mt), RMB 4,280/mt ($677/mt) and RMB 4,610/mt ($729/mt) in the abovementioned cities. All prices include 17 percent VAT ($1 = RMB 6.32).
In the Chinese HRC market, in the past week overall transaction activity has been low, though there has been more transactions at lower prices.
Domestic steel mills have announced reductions in their ex-mill HRC prices, reflecting the difficulty that mills are facing from reduced orders and increased inventory. Meanwhile, some mills have started to perform maintenance work and to reduce their outputs. This may help reduce pressure from oversupply in the coming period.
Summing up, it is expected that the Chinese HRC market will generally move sideways in the next seven days.