China's domestic hot rolled market registered an obvious rise over the past week; however, as a result of the continuous price climb, most end-side buyers reduced their purchases and preferred to adopt a standoff position, thus leading to a decrease in the trading volume.
Product name | Specification | Category | Average price(RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
HR | 5.75 mm x 1,500 mm | Q235B | 3,423 | +103 | 502 |
HR | 2.75 mm x 1,250 mm | Q235B | 3,553 | +100 | 521 |
During the past several weeks, China's hot rolled inventory has consistently maintained a slight rising trend and is now a little higher than at the same time last year. According to the latest statistics, hot rolled inventory in Shanghai on May 7 amounted to 772,730 mt, up 10,740 mt week on week.
Meanwhile, figures from 28 major hot rolled producers in China show that total hot rolled production in May is scheduled to reach 5.95 million mt, up 680,000 mt compared with April. Of these producers, Angang, Shagang, Hanbao Steel and Baotou Steel all expect to post remarkably month-on-month growth for May production. Thus, also taking into account the increased market supplies and the still poor levels of demand, it seems that the Chinese hot rolled market will lack further rising momentum in the coming period.
In addition, last week Laiwu Steel hiked its HRC prices by RMB 20/mt ($3/mt), with the new price of 5.75 mm Q235 now at RMB 3,270/mt ($479/mt). Meanwhile, Bayi Steel made an upward adjustment of RMB 200/mt ($29/mt) to its hot rolled prices, with its new price of 5.75 mm Q235 now standing at RMB 3,680/mt ($540/mt).