Signs of stabilization in local Chinese HRC market

During the week ending February 3, average hot rolled coil (HRC) prices in the Chinese domestic market have mostly continued their decreasing trend, while transaction activity in the market has remained slack. Average HRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
 
During the given week, following previous sharp declines, some large traders have tried to stabilize their offer prices, though other traders have been selling at reduced prices in order to bring in cash before the Spring Festival (February 18-24). At the same time, some steelmakers have kept their prices stable; for instance, Rizhao Steel has issued unchanged ex-works prices. Meanwhile, inventory levels in the HRC market are at high levels, which will likely exert a negative impact on HRC prices. It is expected that HRC prices in the Chinese domestic market will indicate a slight downtrend in the coming week.