Amid upticks in raw material costs, Chinese domestic hot rolled coil (HRC) prices have indicated some increases. However, in light of the tepid demand in the local CRC market, not all CRC prices have increased, while some have indicated downticks. At present, CRC traders are maintaining a cautious stance towards the market.
In the short term, local CRC prices in China are not likely to move up much further as low-cost materials are still available in the domestic market, and also because the supply-demand imbalance is not likely to change in the near term even though some producers have already started overhaul work.
In the coming period, the Chinese domestic CRC market is expected to be characterized by a soft trend, with prices just varying within a narrow range.