Ex-China CRC prices are expected to increase in the near future, following gains in the local market and more active sales in the export market.
At present, export offers for CRC given by major Chinese mills are at $660/mt FOB for October shipment, edging down by $2.5/mt compared to $660-665/mt FOB July 27. However, at least one mill has already announced a new offer at $670/mt FOB, expecting that the market will bottom up next week.
The tradable level of ex-China CRC offer prices is at $640-650/mt FOB, stable compared to last week, but, while deals were limited a week ago, lately demand has improved and buyers from different market like South America, Southeast Asia and the Middle East have decided to purchase at these prices.
During the given week, CRC prices in the Chinese domestic market have seen big rises amid decreasing inventory level. Meanwhile, HRC futures prices at Shanghai Futures Exchange (SHFE) have indicated a rebounding trend, bolstering market players’ confidence to some extent. Currently, downstream industries have gradually resumed production, which will positively affect the CRC market. However, there were uncertainties caused in the financial markets by the visit of US House Speaker Nancy Pelosi to Taiwan. 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 4,436/mt ($654/mt) ex-warehouse, moving up by RMB 176/mt ($26/mt) compared to July 27, according to SteelOrbis’ information.
As of August 3, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,020/mt ($593/mt), increasing by RMB 146/mt ($21.5/mt) or 3.8 percent since July 27.
$1 = RMB 6.7813
