Hot Rolled Coil (HRC) prices continued to slide in Europe (-1% N Europe/-5% Southern Europe) and the US (-3%). Pricing signals in China were mixed: HRC rose 1% WoW but Cold Rolled Coil (CRC) prices softened; Shanghai traders reported offers down $4/t WoW, and while official prices in Guandong region were flat, traders are said to be willing to cut prices in order to stimulate sales.
This is inline with recent trade commentary that the apparent “recovery” in steel prices is being driven by speculation rather than a recovery in real demand.
Chinese steel demand expected to fall 6-8% H2 vs.H1
Source: Goldman Sachs
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