In the past week, cold rolled coil (CRC) prices in the Chinese market have continued to trend upward. The average CRC prices in the main markets in China are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
1.0 mm x 1,250 mm x C |
SPCC |
5,397 |
+40 |
838 |
+6 |
|
CRS |
1.0 mm x 1,250 mm x 2,500 mm |
SPCC |
5,497 |
+10 |
854 |
+2 |
As of July 28, the prices of ST12 1.0 mm x 1, 250 mm x C CRC in Shanghai, Tianjin and Lecong are respectively at RMB 5,330/mt ($828mt), RMB 5,350/mt ($831/mt) and RMB 5,510/mt ($856/mt). For ST12 1.0 mm x 1, 250 mm 2,500 mm CRS, prices stand at RMB 5,390/mt ($837/mt), RMB 5,500/mt ($854/mt) and RMB 5,600/mt ($870/mt) in the abovementioned cities. All prices include 17 percent VAT ($1 = RMB 6.464).
As for inventory, CRC inventory in China's main markets has continued to decrease. On July 22, aggregate CRC inventory in China's main markets totaled 1.61306 million mt, a decrease of 23,400 mt compared with the previous week.
In the past week, the domestic CRC market in China has again trended upward. However, traders are still cautious about increasing their prices as they think that this may have a negative impact on their transaction volumes. Following the flats price increases for August by WISCO and Baosteel, in the past week Shougang and Anshan Steel have announced unchanged prices.
Market players state that the Chinese CRC market may continue to trend upward in the short term. Expecting further price increases, end-users are hurrying to conclude bookings. The good transaction activity has provided support for market prices. Meanwhile, compared to the ex-factory prices of CRC, spot prices remain at low levels. Traders are now more active in booking materials, in view of previous low booking activity.
Summing up, it is predicted that the Chinese CRC market will rise in the short term, with the extent of the increase depending on the strength of downstream demand.