China Hot Rolled Coil Price Shows Bottoming Out

Chinese cold rolled sheet market price decreased by 200 yuan or 2,800 yen to 5,650 yuan per tonne for products with 1 millimeter thick in Beijing in the fourth week of June from the previous week, announced by China Iron & Steel Association. The price declined by 650 yuan compared with the peak in the second week of May. The price of hot rolled coil with 3 millimeters thick stayed flat at 4,320 yuan. Chinese hot coil price showed sign to hit bottom when the price increased by 10 yuan in Nanjing.

The price decreased by 50 yuan to 5,050 yuan per tonne for cold rolled sheet and by 70 yuan to 4,380 yuan for hot rolled steel in Shanghai in the fourth week from the previous week. The hot rolled price was flat at 4,300 yuan in Guangzhou while the cold rolled price declined by 150 yuan to 5,600 yuan. The hot rolled price was also flat at 4,380 yuan in Chengdu while the cold rolled price decreased by 100 yuan to 5,200 yuan. Chinese hot rolled price stopped decreasing in many cities while the cold rolled price continued declining.

Chinese hot rolled coil export would decrease when the government eliminates the export tax refunds on July 15. However, the government leaves the refunds unchanged for cold rolled wide strip with less than 3 millimeters thick. The steel market price would continue decreasing when Chinese major steel makers announced no major supply cut despite of expectation in the market.