It is reported that the HRC and CRC prices in China domestic market has kept sliding down from mid January.

Mr Li Zhongshuang general manager of Shanghai Ruikun Metals & Materials Co Ltd the market will stay under corrections before Spring Festival and no upturn will be seen.

As shown by Mr Li survey in Shanghai market, thick gauge and thin gauge HR coils lost some CNY 80 per tonne and CNY 50 per tonne this week attributable to below reasons

1. The central bank raised up reserve ratio, showing signs of credit crunch

2. Appreciation of the dollar leads to price drop of many commodities and affects rebar futures performance

3. Baosteel flattened February price easing the cost drive and further upswing

4. The demand will stay weak before the spring festival

Mr Li's company quoted Baosteel made SPHC 1.8mm at CNY 4500 per tonne down by CNY 20 per tonne from a week before, 2.0mm at CNY 4430 per tonne down by CNY 50 per tonne, Benxi Steel made Q235B 4.75mm was quoted at CNY 3800 per tonne down by CNY 80 per tonne.

According to the survey, CRC price lost CNY 100 per tonne this week due mainly to falling HRC and soft demand at the year end.