During the week ending September 20, average hot rolled coil (HRC) prices in the Chinese domestic market have indicated an overall downtrend, while transaction activity in the overall market has been at low levels. Average HRC prices in the local Chinese market are presented in the following table.
During the given week, the downtrend in HRC futures prices has exerted a negative impact on HRC spot market, resulting in slack activities and dragging down HRC prices. HRC traders have mostly hold a wait-and-see stance towards prospect for the future market. However, steelmakers’ comparatively high ex-works prices have provided certain support to HRC prices in spot market. As National Holiday (October 1-7) is approaching, market participants’ sentiment will be negatively affected due to financial tightness. It is thought that HRC prices in the Chinese domestic market will move sideways in the coming week.
| Product Name | Spec. | Category | City | Steel Plant/Origin | Price (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Medium HRC | 5.75 mm x 1,500 mm x C | Q235B/SS400 | Shanghai | Tangshan Steel | 2,700 | 405 | ↓40 |
| Tianjin | Tangshan Steel | 2,700 | 405 | ↓100 | |||
| Lecong | Liuzhou Steel | 2,740 | 411 | ↓90 | |||
| Average | - | 2,713 | 407 | ↓77 | |||
| Thin HRC | 2.75 mm x 1.,250 mm x C | Q235B | Shanghai | Tangshan Steel | 2,870 | 430 | ↓40 |
| Tianjin | Tangshan Steel | 2,780 | 417 | ↓80 | |||
| Lecong | Lianyuan Steel | 2,840 | 426 | ↓90 | |||
| Average | - | 2,830 | 424 | ↓70 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.67