Ex-China CRC prices have moved sideways over the past week, but some sellers have provided discounts to sign deals, with the mood in the market weakening due to the slight price decreases in the local market and the previous sharp drop in futures prices, which have just recovered lately.
At present, export offers for CRC given by major Chinese mills are at $850-860/mt FOB for March shipment, remaining stable compared to January 12. But the tradable level, already fixed in deals, has been at $840-850/mt FOB as suppliers have been more flexible, trying to accelerate sales.
But further price declines may be unlikely, sources believe. “The increasing trend in HRC futures prices and iron ore prices will positively affect the ex-China CRC market,” an international trader told SteelOrbis.
During the given week, CRC prices have seen slight declines amid slack demand as the Chinese New Year holiday is approaching. Downstream users have been unwilling to purchase CRC, which has exerted a negative impact on prices. It is thought that CRC prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,373/mt ($845/mt) ex-warehouse, down by RMB 7/mt ($1.1/mt) compared to January 12, according to SteelOrbis’ information.
As of January 19, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,815/mt ($757/mt), increasing by RMB 64/mt ($10.1/mt) or 1.35 percent since January 12.
$1 = RMB 6.3624
