Over the past week the Chinese cold rolled coil (CRC) market has registered a decrease while the transaction situation has not been good. Although the volume of new supply arrivals was not great, the weak levels of demand raised the concerns of traders.
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
1.0 mm × 1,250 mm ×C |
SPCC |
5,277 |
-23 |
793 |
-3 |
|
CRS |
1.0 mm × 1,250 mm × 2,500 mm |
SPCC |
5,357 |
-40 |
806 |
-6 |
On October 20, prices of ST12 1.0 mm × 1,250 mm × C CRC stand at RMB 5,240/mt ($786/mt), RMB 5,250/mt ($787/mt) and RMB 5,340/mt ($801/mt) respectively in the Shanghai, Tianjin and Lecong markets. In addition, prices of ST12 1.0 mm × 1,250 mm × 2,500 mm CRS stand at RMB 5,270/mt ($790/mt), RMB 5,350/mt ($802/mt) and RMB 5,450/mt ($817/mt) respectively in the Shanghai, Tianjin and Lecong markets. All the above prices include 17 percent VAT (US$1 = RMB 6.67).
Although prices in the domestic CRC market have dropped, the market transaction situation has not seen any improvement, with end-users in no hurry to conclude purchases. In their newly-published price policies, the mills have kept their November prices unchanged from October levels, due to the support of costs. The market is currently facing pressure from high inventory and low demand, and traders lack optimism about the future market.
The increase of 0.25 percent in interest rates announced on October 19 by the Chinese central bank has had a negative impact on the domestic steel futures market, with a resulting knock-on effect on China's CRC market. Insiders say the interest rate increase is aimed at controlling inflation. However, based on the central bank's historic behavior, it is thought that the bank will most likely not increase interest rates any further in 2010.
It is expected that CRC prices in the Chinese domestic market will fluctuate slightly in the coming period.