WEEKLY: China’s HRC prices slip, output climbs
Jan 26, 2021 17:30
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China’s hot-rolled coil (HRC) price in the physical market weakened moderately over the January 18-22 week, according to Mysteel’s assessment, given the pressure from higher production and fears for softening demand in the near future. The price of Q235 4.75mm HRC lost Yuan 40/tonne ($6.2/t) on week to Yuan 4,503/t including the 13% VAT as of January 22.
“Steelmakers are still earning some profits from making HRC, and though their margins are thin they wouldn’t lower production so long as they are making profits,” a Shanghai-based analyst said, indicating that the still-active production is putting pressure on prices.
In fact, HRC production among Mysteel’s 37 sampled mills nationwide increased