Pessimistic sentiment in sluggish Chinese domestic HRC market

During the week ending April 21, average hot rolled coil (HRC) prices in the Chinese domestic market have moved on a downward trend, while transaction activity in the market has been on the low side. Average HRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
 
During the given week, despite the good news of the one percentage point cut in the reserve requirement ratio for Chinese banks as of April 20, domestic HRC traders have been cautious about giving offers and reluctant to increase their prices. Lately, steelmakers in northern China have reduced their HRC deliveries to southern China as prices in the south have been lower than in the north. In the given week, the weakness of HRC prices in the Shanghai market have influenced the price trend in the overall domestic market, affecting sentiment among HRC traders, with traders pessimistic on the future prospects for the market. It is expected that HRC prices in the Chinese domestic market will move sideways in the coming week.