During the week ending August 14, hot rolled coil (HRC) prices in the Chinese domestic market have continued to drop down amid weak demand. Average HRC prices in China can be viewed in the SteelOrbis price reports section.
In the current year, Chinese steel companies have been struggling with reduced liquidity as the banks have tightened their credit lines. As a result, many steel traders have been forced to remain inactive. Due to slack demand as well as market players' pessimistic outlook for the future, there is a greater willingness to cut offer prices in order to attract orders.
Following the price cut announced by major domestic producer Baosteel, domestic steelmaker WISCO has decided to reduce its HRC price by RMB 200/mt ($31/mt) for September shipments. It is expected that the Chinese HRC market will continue its weak trend in the coming week.