During the week ending July 12, average hot rolled coil (HRC) prices in the Chinese domestic market have indicated a rising trend, while transaction activity in the overall market is still on the slack side. Average HRC prices in the local Chinese market are presented in the following table.
There have been reports in the market, though not officially confirmed yet, that from July 12 to July 31 pollution emissions from the sintering process in the steel industry in Tangshan will have to be cut by 50 percent against the backdrop of the 40th anniversary of the Tangshan earthquake. Accordingly, market players expect to see a reduction in supply. The futures prices of HRC, rebar and iron ore in China have indicated sharp rising trends, providing support for HRC prices in the spot market, though transaction volumes for HRC have not improved given the traditional offseason for business in the summer. Meanwhile, market players think that domestic steelmakers will likely raise their HRC ex-works prices for August delivery. It is thought that HRC prices in the Chinese domestic market will likely move sideways in the coming week.
| Product Name | Spec. | Category | City | Steel Plant/Origin | Price (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Medium HRC | 5.75 mm x 1,500 mm x C | Q235B/SS400 | Shanghai | Tangshan Steel | 2,620 | 392 | ↑20 |
| Tianjin | Tangshan Steel | 2,600 | 389 | ↑80 | |||
| Lecong | Liuzhou Steel | 2,700 | 404 | ↑50 | |||
| Average | - | 2,640 | 395 | ↑50 | |||
| Thin HRC | 2.75 mm x 1.,250 mm x C | Q235B | Shanghai | Tangshan Steel | 2,710 | 405 | ↑10 |
| Tianjin | Tangshan Steel | 2,660 | 398 | ↑60 | |||
| Lecong | Lianyuan Steel | 2,720 | 407 | ↑40 | |||
| Average | - | 2,660 | 398 | 0 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.69