During the week ending February 17, average hot rolled coil (HRC) prices in the Chinese domestic market have indicated a slight downtrend, while transaction activity in the market has been quiet due to the approach of the Spring Festival holiday (Feb. 18-24). Average HRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, more and more downstream users and traders have been leaving the market to start their holiday. After the holiday, demand from downstream users is expected to indicate a slow recovery. By then, the market is expected to see an increase in supplies. However, it is thought that HRC prices will not move down significantly after the holiday due to the considerable declines seen in the pre-holiday period.