Ex-China cold rolled coil (CRC) prices have moved sideways following the recovery in futures HRC prices as of today Wednesday, April 23 coupled with the easing situation of the tariff issue.
At present, export offers for CRC from China are in a range of around $535-545/mt FOB, for June shipment, moving sideways on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $530-535/mt FOB, versus the range of $530-535/mt FOB recorded last week.
During the given week, CRC prices in the Chinese domestic market have moved down amid the slightly increasing inventory levels. Demand for CRC from downstream users has been unsteady, exerting a negative impact on its prices. Cautious sentiments still prevailed among market players, which will affect CRC market.
On April 22, the US President Trump told reporters that he will “dramatically lower” the high tariffs imposed on China. He said he plans to be “very friendly” to China in trade talks, and that if the two countries can reach an agreement, tariffs will drop significantly, though not to zero. This statement showed the eased attitude of the US in tariff issue.
At the same time, as the Labor Day holiday (May 1-5) is approaching, some buyers might build up certain stock, which will bolster the CRC prices to a certain degree. It is expected that CRC prices in the Chinese domestic market will likely move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,643/mt ($505/mt) ex-warehouse, moving down by RMB 90/mt ($12.5/mt) compared to April 16, according to SteelOrbis’ information.
As of April 23, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,233/mt ($445/mt), increasing by RMB 28/mt ($3.9/mt) or 0.9 percent since April 16, while up 1.41 percent compared to the previous trading day, April 22.
$1 = RMB 7.2116
