China Hot Rolled Coil Price Rebounds

Chinese hot rolled coil market price slightly increased by around 200 yuan or around US$ 30 to 3,800 yuan or US$ 560 per tonne around Shanghai last week, according to a trade firm source.

The hot rolled coil price seemed to rebound in China due to the inventory adjustment after Chinese steel makers reduced the steel output. However, Japanese trade firm remains skeptical about whether the steel price continue increasing when the production cut impact is uncertain.

Chinese raw steel output decreased by 4.2% to 53.77 million tonnes in June from May, which decreased for the first time in 4 months. However, the steel products’ output increased by 0.3% in June from May, which increased for 4 straight months. Chinese iron ore import price from India seemed to increase and reached more than CFR US$ 130 per tonne for the first time in a half month. The Japanese industry sources see the Chinese steel makers increased the iron ore purchase for steel production expansion.

Japanese hot rolled coil spot export price remains low at less than FOB US$ 600 per tonne.