Inspired by the price increases observed in the local longs market, Chinese hot rolled traders also moved to hike their HRC prices, thereby causing a certain amount of confusion as regards market quotations over the past week. Despite a minor decline in market inventory, overall inventory levels are still relatively high.
Product name |
Specification |
Category |
Average price(RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
HR |
5.75 mm x 1,500 mm |
Q235B |
3,327 |
+187 |
487 |
HR |
2.75 mm x 1,250 mm |
Q235B |
3,373 |
+80 |
494 |
Characterized by confusion as regards quotations, China's domestic hot rolled market registered a mixed performance in the past week. Prices of 5.75 mm x 1,500 mm x C hot rolled coils in Shanghai and Tianjin first dropped down to the level of RMB 3,050/mt ($447/mt), with traders subsequently starting to hike their prices against a background of improved trading activities.
The upward movement in the long products market boosted the hot rolled market to a great extent over the past week. However, the rising prices in the long products market mainly resulted from increased demand caused by mass government investment in infrastructure construction; meanwhile, actual market demand for hot rolled products remains insufficient. Moreover, inventory pressure and other negative factors still exist in the current domestic hot rolled market. As a result, the market is expected to retain its fluctuating movement in the short term.
Last week, China's hot rolled inventory saw a minor decline, but still remains at a relatively high level. According to the latest statistics, hot rolled inventory in Shanghai amounted to 784,370 mt on April 17, down 9,750 mt week on week.
On April 17, Angang released its latest prices for May, with a downward adjustment of RMB 260/mt ($38/mt) made to hot rolled prices. As a result, the new price of 5.75 mm x 1,500 mm Q235 is now at RMB 2,470/mt ($362/mt, excluding 17 percent VAT).
In addition, Anyang Steel, Ningbo Steel, and Laiwu Steel also lowered their ex-factory prices by margins of RMB 70-222/mt ($10-33/mt). Currently, the ex-factory prices of thick coils from various leading Chinese mills are generally around RMB 3,200/mt ($469/mt), including 17 percent VAT.