During the week ending April 7, average hot rolled coil (HRC) prices in the Chinese domestic market have indicated significant decreases, while overall transaction activity in the market has been on the low side.
During the given week, HRC futures prices have indicated sharp declines, exerting a negative impact on the local HRC spot market, with some traders now pessimistic on the future prospects for the market. Many traders have had to lower their sales prices in order to attract business, but the response from buyers has not been good.
In April, many steelmakers in northern China will carry out maintenance work. Tangsteel and Chengde Steel, for example, have started their maintenance work already, and so supply pressure will be eased to some degree. It is expected that HRC prices in the Chinese domestic market will continue to decline in the coming week.