Over the past week the Chinese cold rolled market has continued to increase but at a faster rate than in the previous week. Major traders are optimistic about the future trend of the market, while some analysts express concern about the rapid price rise. Meanwhile, market inventory levels have decreased due to the numbers of transactions concluded.
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
1.0 mm x 1,250 x C | SPCC | 5,777 | +110 | 847 | |
CRS | 1.0 mm x 1,250 x 2,500 | SPCC | 6,077 | +160 | 891 |
During the past week the overall Chinese cold rolled market has registered a rapid increase. While spot prices have been lower than the ex-factory prices, due to the continuous increase in market prices the price gap in question has now been reduced. Considering the recent surge in cold rolled product costs, most traders are optimistic about the long-term prospects for the domestic cold rolled market. In the short-term at least, most traders are adopting a wait-and-see stance towards the market. According to feedback from traders, cold rolled prices are now abnormally higher than galvanized steel prices. If cold rolled products maintain their strong price uptrend, there will be greater risk in the market.
As regards inventory, in the past week overall domestic cold rolled inventory levels have continued to decline, as in the previous week. According to the statistics, on March 12 cold rolled inventory in China's main markets amounted to 1,363,210 mt, down 27,850 mt week on week, but 16 percent higher than the same period last year. Inventory registered the strongest decline in the eastern China market, followed by the southern China market. On March 12, cold rolled inventory in Shanghai totaled 415,610 mt, indicating a decrease of 17,150mt week on week.
On the export side, the price of Chinese production 1.0 mm cold rolled coil for export now stands at $740-750/mt FOB, $20-30/mt higher than in the previous week. Export prices are still rising, with export companies optimistic about the future market.
Turning to the downstream industry, in February this year domestic automobile sales in China amounted to 881,100 units, down from 1,214,200 units in January.
In conclusion, in the coming week it is expected that the Chinese cold rolled market will continue its upward trend, but possibly at a slower pace.