In the past week, hot rolled coil (HRC) prices in the Chinese market have trended downward. 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 |
4,793 |
-47 |
774 |
-7 |
HR |
2.75 mm x 1,250 mm |
Q235B |
4,850 |
-13 |
753 |
-2 |
As of August 10, the prices of Q235/S400 5.75 mm HRC in Shanghai, Tianjin and Lecong are respectively RMB 4,750/mt ($738mt), RMB 4,700/mt ($730/mt) and RMB 4,930/mt ($766/mt). For Q235 2.75 mm HRC, prices stand at RMB 4,800/mt ($745/mt), RMB 4,730/mt ($734/mt) and RMB 5,020/mt ($780/mt) in the abovementioned cities. All prices include 17 percent VAT ($1 = RMB 6.44).
In terms of inventory, the aggregate inventory in China's main HRC markets continues to rise. On August 5, the inventory in China's main HRC markets amounted to 4.30741 million mt, an increase of 3,020 mt week on week. On the same date, HRC inventory in Shanghai amounted to 1.52288 million mt, an increase of 22,030 mt from the previous week.
China's steel futures market has been negatively affected by negative economic developments worldwide. In China's main HRC markets, traders are tending to adopt a wait-and-see stance. In line with decreasing demand, many traders have begun to reduce their prices or show a greater willingness to bargain. Although the lowest prices in the market are falling continuously, traders are not interested in purchasing.
Many traders and end-users are unsure what to do in the current market situation. If the debt crisis in Western countries becomes more serious, commodity markets will be strongly impacted, and so it is difficult to predict future market trends. According to the relevant data, in July China's consumption price index (CPI) increased by 6.5 percent year on year, and so inflation in the country is still strong.
Summing up, it is expected that China's HRC market will trend downward in the coming period.