During the week ending November 29, hot rolled coil (HRC) prices in the Chinese market have continued to slide down further.
As of November 29, the prices of Q235/S400 5.75 mm hot rolled coil (HRC) in Shanghai, Tianjin and Lecong are respectively RMB 4,160/mt ($655/mt), RMB 4,150/mt ($654/mt) and RMB 4,220/mt ($665/mt). For Q235 2.75 mm HRC, prices stand at RMB 4,300/mt ($677/mt), RMB 4,280/mt ($674/mt) and RMB 4,550/mt ($717/mt) in the abovementioned cities. All prices include 17 percent VAT. Prices of hot rolled coil in China can be viewed in the SteelOrbis price reports section.
In the week in question, the Chinese HRC market has been quiet, with few transactions heard. The anticipated traditional winter restocking activity has not been seen, as traders are not confident enough to make new purchases amid high production costs, high interest rates and other negative factors. In addition, the monetary policy of the Chinese government has not provided any noticeable relief.
Despite the support of high production costs, lack of demand is causing prices of HRC in China to soften. It is expected that Chinese HRC prices will continue to follow a weak trend in the near future.