Traders wait and see in local Chinese HRC market

In the week ending May 26, average hot rolled coil (HRC) prices in the Chinese domestic market have indicated a slight downward movement, while transaction activity in the overall market has improved compared to the previous week, though it remains quiet.
 
During the given week, prices of 2.75 mm HRC have varied from trader to trader as some shortages have been seen for this specification. Lately, local HRC traders have mostly been maintaining a wait-and-see stance as regards the future prospects for the market, while the weak sentiment among traders is unlikely to improve in the coming week. Approaching the end of the month, new supplies have been arriving in the market, which will exert a negative impact on the local HRC market from the supply side. It is expected that HRC prices in the Chinese domestic market will likely continue to move on a slight downtrend in the coming week.