Colder weather impacts demand in local Chinese CRC market

During the week ending November 25, prices in the Chinese domestic cold rolled coil (CRC) market have indicated a slight downtrend, while transaction activity has remained at low levels. Average CRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
 
As the weather gets colder in China, demand for CRC from downstream users has shrunk. Meanwhile, most traders are experiencing tight liquidity coming towards the end of the year and so they are inclined to sell at lower prices in order to increase their sales and bring in cash. In the short run, CRC prices in the Chinese domestic market will likely move down further as CRC supplies are plentiful on the steelmakers' side. Indeed, prices in CRC transactions recently concluded by major domestic steelmakers Angang and WISCO have indicated significant declines. Meanwhile, the decision by the People's Bank of China (PBOC) to decrease benchmark interest rates has not had any influence on the local CRC market yet. It is expected that CRC prices in the Chinese domestic market will continue their downward trend in the coming week.