Ex-China CRC prices have dropped this week given the further weakening of HRC futures prices and local CRC offers in China.
At present, export offers for CRC given by major Chinese mills are at $640/mt FOB for October shipment, moving down by $15/mt compared to August 2. Meanwhile, the tradable level of ex-China CRC offer prices has been estimated at $635-637mt FOB, versus $640-645/mt FOB last week.
According to sources, ex-China CRC offers in the Middle East, the UAE in particular, have been reported at around $660/mt CFR, down by $10-20/mt week on week.
During the given week, supply of CRC has been sufficient, while downstream users have only concluded purchases as needed. Demand for CRC has not indicated a significant improvement yet, which has exerted a negative impact on prices. Market players are cautious as regards the future prospects for the CRC market. Typhoon Khanun is going to the hit coastal area of the Korean Peninsula on August 10, which will bring heavy rainfall to north eastern China and this will slacken the demand for CRC. “The typhoon and heavy rains will negatively affect the CRC market, while the decreasing import iron ore prices may also weaken the support for CRC prices from the cost side,” an international trader told SteelOrbis.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,347/mt ($607/mt) ex-warehouse, decreasing by RMB 30/mt ($4.2/mt) compared to August 2, according to SteelOrbis’ information.
As of August 9, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,964/mt ($554/mt), decreasing by RMB 66/mt ($9.2/mt) or down by 1.6 percent since August 2.
$1 = RMB 7.1565