Monthly HRC Market Report Dec 2017
2018-01-02 17:59:25 【Print】
The following is a brief synopsis of the report. Your access is restricted as it is a subscription based service.
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1. Market Highlights
Prices for HRC declined slightly in North and South China, while they rose slightly in East China during the month. Sharp and continuous prices declines of steel billet and construction steel weakened HRC market participants' confidence to a large extent. Besides, facing heavier capital pressures with the approach of the end of the year, downstream customers could not afford to place large orders, and the downward price trend also weakened their purchasing activities, leading to a slow market. Reporting unsatisfactory sales performances, traders were not so confident of the market outlook and eager to sell products to withdraw capitals. In the meantime, major producers such as Baosteel, WISCO, Ansteel and Bengang Steel raised HRC EXW prices by RMB100-200/t (USD15-30/t) for next January production, but it is said that they will enlarge HRC production and reduce the output of construction steel in January seeing the price drop of the latter. Considering the market performance is unlikely to recover in January with the approach of the Spring Festival (February 16), insiders think the price for HRC may go down next month.
Prices for HRC declined slightly in North and South China, while they rose slightly in East China during the month. Sharp and continuous prices declines of steel billet and construction steel weakened HRC market participants' confidence to a large extent. Besides, facing heavier capital pressures with the approach of the end of the year, downstream customers could not afford to place large orders, and the downward price trend also weakened their purchasing activities, leading to a slow market. Reporting unsatisfactory sales performances, traders were not so confident of the market outlook and eager to sell products to withdraw capitals. In the meantime, major producers such as Baosteel, WISCO, Ansteel and Bengang Steel raised HRC EXW prices by RMB100-200/t (USD15-30/t) for next January production, but it is said that they will enlarge HRC production and reduce the output of construction steel in January seeing the price drop of the latter. Considering the market performance is unlikely to recover in January with the approach of the Spring Festival (February 16), insiders think the price for HRC may go down next month.
