During the week ending October 23, hot rolled coil (HRC) prices in the Chinese domestic market have moved up again following the downward correction observed in the previous week. Average HRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
In the given week, upward movement in the steel futures market has provided support for the Chinese domestic HRC market. Meanwhile, relatively low availability of HRC spot products and Chinese mills' HRC price increase announcements for November shipment have also provided support for the HRC market.
During the week ending October 23, some local HRC traders were not inclined to sell large volumes, while some others actively increased stocks in expectation of price increases, thus reflecting the current optimism among Chinese traders of HRC. However, it is reported that producers are not finding it easy to sell HRC materials at current prices and that the market is consequently unlikely to maintain a significant rising trend.
It is thought that the Chinese HRC market may fluctuate in an upward direction in the coming seven days, though at the same time there is expected to be limited room for further increases.