Ex-China CRC prices have been showing some signs of recovery over the past week given the better sentiments mounting in the local CRC market, coupled with the recovery of HRC futures prices in China.
At present, export offers for CRC given by major Chinese mills have been voiced at around $605-635/mt FOB for June shipment, versus $605-610/mt FOB last week. Meanwhile, the tradable levels for ex-China CRC have been heard at $605-620/mt FOB, moving up by $7.5/mt on average week on week. According to sources, Chinese traders have managed to sell some CRC volumes in the Middle East and in South America, though trade has remained limited so far.
During the given week, CRC prices in the Chinese domestic market have edged up amid the improved demand from downstream users. Semi-finished steel prices have edged up, bolstering market sentiments. Moreover, ferrous metal futures prices have also increased, exerting a positive impact on the CRC market. Downstream users have been more willing to conclude purchases for CRC, though low-priced materials are more attractive. It is thought that CRC prices in the Chinese domestic market will likely edge up in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,113/mt ($579/mt) ex-warehouse, increasing by RMB 16/mt ($2.3/mt) compared to April 10, according to SteelOrbis’ information.
As of April 17, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,833/mt ($540/mt), increasing by RMB 92/mt ($13/mt) or 2.5 percent since April 10, while up 1.29 percent compared to the previous trading day, April 16.
$1 = RMB 7.1025