During the week ending June 18, hot rolled coil (HRC) prices in the Chinese domestic market have fluctuated in an upward direction. Among the factors which have contributed to the price increases in the local HRC market are support from iron ore costs, positive developments in the steel futures market and the readiness of market players to raise their prices after the long-standing downtrend of the HRC market. Average HRC prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
Traders are now not so pessimistic about the future prospects of the Chinese HRC market. However, with no remarkable improvement seen in domestic demand, it is still too early to predict the price trend of the local HRC market in the coming period. At present, HRC inventory levels in the market are still high. Market players expect that in the coming days the spot market may come under downward pressure caused by destocking activity. On the whole, traders are still cautious. Local HRC prices in China are expected to indicate just slight fluctuations in the coming week.