During the week ending September 4, prices in the Chinese domestic cold rolled coil (CRC) market have only indicated minor fluctuations. Average CRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
The upticks in prices in the previous week have not triggered any improvement in demand in China's domestic CRC market. Traders have different views regarding the future prospects of the market. Some traders are pessimistic and consider that demand may not be so strong in the coming period following its good performance in July and August when business is traditionally slow. Accordingly, these traders think that prices are unlikely to rise in the coming period. Furthermore, many mills have not carried out overhaul work, which means there is less support for prices.
Optimistic traders cite steel producers' higher CRC prices for September and state that the cooler weather in autumn may result in improved demand. In addition, traders' inventories are at lower levels compared to the same time last year.
It is expected that in the coming week Chinese domestic CRC prices will continue to indicate just minor fluctuations.