During the week ending April 3, cold rolled coil (CRC) prices in the Chinese domestic market have continued their decreasing trend. Average CRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
The decline in local HRC prices has contributed to the weakness of CRC prices in the Chinese domestic market in the past week. Meanwhile, transaction activity in the market has been quiet. Currently, CR traders are pessimistic on the prospects for the future market.
Factors which prevent the recovery of the CRC market in China include high market inventory and oversupply, tightened credit supply from the banks for the steel industry due to the overcapacity issue, and steelmakers' reduced prices for April delivery.
Overall, it is thought that CRC prices in the Chinese domestic market will continue their falling trend in the short term.