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China's HRC market remains volatile as stocks increase

Hot rolled coil (HRC) market in China continued to increase its inventories in Southern China, while slight increases were experienced in other regions. This resulted as high supply and price drops in the market. Market participants predict that prices will continue to fluctuate as they determine their expectations for the next two weeks.

China's HRC market remains volatile as stocks increase

In the Eastern China market, the main price offer of 1500 mm carbon hot rolled coil was recorded in the range of 3710-3730 yuan/ton (510-513 USD), and the price of 1800 mm wide coil was recorded in the range of 3770-3790 yuan/ton (518-521 USD). In low alloy steel, the price of 1500 mm coil is determined as 3840-3860 yuan/ton (528-530 USD), and the price of 1800 mm coil is 3910-3930 yuan/ton (537-540 USD).

Last week, hot rolled coil stocks in Shanghai decreased by approximately 11,000 tons. However, on the demand side, as the market first rose and then fell, prices also changed in parallel with this fluctuation. When prices rose, purchases were moderate.

Chinese steel mills and traders have generally stopped lowering their HRC offers and started increasing them. SS400 HRC offers from a northeastern steel mill remained stable at USD 530/t FOB, ending four consecutive weeks of downward trend.

Developments in the futures market and macroeconomic news affected traders' offers, causing trading volume this week to remain at lower levels compared to last week.
These developments show that prices and stocks continue to fluctuate in the Chinese HRC market. More changes are expected in the coming weeks, depending on market drivers.

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