Negative factors prevail in local Chinese HRC market

During the given week, HRC futures prices in China have showed downward movement, while semi-finished steel prices in Tangshan, which are regarded as an indicator for the Chinese finished steel market, have also seen decreases, exerting a negative impact on the finished steel market. Meanwhile, steel plate producers in China have cut their ex-works prices for steel plates, enlarging the price gap between steel plates and HRC, with the current gap at RMB 120/mt ($19.42/mt), causing some customers to purchase cheaper steel plates instead of HRC. Traders mostly hold a wait-and-see stance towards the prospects for the future market. One piece of good news is that volumes of materials arriving in the market have been at low levels, resulting in some shortages of supplies, providing a certain degree of support for HRC prices. It is expected that HRC prices in the Chinese domestic market will follow a slight downtrend in the coming week.