During the past week, the Chinese cold rolled coil (CRC) market has trended down slightly in some regions. The general transaction situation is not great at present.
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
1.0 mm × 1,250 mm × C | SPCC | 5,333 | -17 | 794 | |
CRS | 1.0 mm × 1,250 mm × 2,500 mm | SPCC | 5,433 | -17 | 809 |
On September 15, prices of ST12 1.0 mm × 1,250 mm × C CRC stand at RMB 5,250/mt ($781/mt), RMB 5,350/mt ($796/mt) and RMB 5,400/mt ($804/mt) respectively in the Shanghai, Tianjin and Lecong markets. In addition, prices of ST12 1.0 mm × 1,250 mm × 2,500 mm CRS stand at RMB 5,350/mt ($796/mt), RMB 5,450/mt ($811/mt) and RMB 5,500/mt ($818/mt) respectively in the Shanghai, Tianjin and Lecong markets. All the above prices include 17 percent VAT (US$1 = RMB 6.72).
During the past week, the domestic steel futures market dropped down slightly, exerting an influence on traders. It is thought that Chinese CRC market prices may lack sufficient support for increases in the coming period.
Domestic steel producers Baosteel and Wuhan Iron and Steel (WISCO) published their October steel product price policies on September 14 and September 15 respectively, making upward adjustments for major products. Baosteel increased its CR product prices by RMB 100-200/mt ($14-29/mt), while WISCO raised its CR product prices by RMB 100/mt ($14/mt). The central government's policy on energy savings and emissions reductions has had a negative influence on steel outputs and on market supplies, and so in the short term domestic cold rolled prices may retain their strength. Downstream demand will decide whether CR prices can rebound or otherwise.
During the past week, CRC inventory in the major Chinese cities continued to decrease, though at a slower rate than in the previous week. On September 10, CRC inventory in the major Chinese cities totalled 1,366,250 mt, down 8,060 mt from September 3. CRC inventory in Shanghai on September 10 totaled 464,450 mt, down 5,960 mt week on week.
Generally speaking, it is thought that Chinese CRC market players may adopt a wait-and-see approach in the coming week and that market price may fluctuate.