Sharp rises in local Chinese HRC market

During the week ending March 8, average hot rolled coil (HRC) prices in the Chinese domestic market have indicated sharp rising trends, while transaction activity in the overall market has been at decent level. Average HRC prices in the local Chinese market are presented in the following table.

During the given week, since iron ore, coke, rebar and HRC futures prices have seen sharp rising trends, market participants’ confidence has been boosted. Meanwhile, Tangshan International Horticultural Exposition 2016 will be hold on April 29 2016, which will negatively affect steel production in northern China due to strict requirement for environment, thus bullish sentiment prevailing in Chinese finished steel market. Semi-finished steel prices have also seen significant rises, providing support to HRC prices. Some HRC traders have suspended their trading activities to see what’s going on in the near future, with some traders increasing their offer prices further, while transaction activity already showed signs of slackness after sharp rises. It is expected that HRC prices in the Chinese domestic market will likely edge up further in the coming week, though with narrower rising range. 

 

 

17 percent VAT is included in all prices and all prices are ex-warehouse.

 

$1 = RMB 6.51