During the past week, the Chinese domestic cold rolled coil (CRC) market fluctuated downward, while inventory in the major regional markets continued to increase. Traders are optimistic but cautious about the future.
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
1.0 mm × 1,250 mm × C | SPCC | 5,203 | -10 | 765 | |
CRS | 1.0 mm × 1,250 mm × 2,500 mm | SPCC | 5,377 | -43 | 791 |
On August 25, prices of ST12 1.0 mm × 1,250 mm × C CRC stand at RMB 5,110/mt ($751/mt), RMB 5,200/mt ($765/mt) and RMB 5,300/mt ($779/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 5,330/mt ($784/mt), RMB 5,250/mt ($772/mt) and RMB 5,550/mt ($816/mt) respectively in the Shanghai, Tianjin and Lecong markets. All the above prices include 17 percent VAT (US$1 = RMB 6.80).
The drop in HRC prices is exerting an influence on CRC prices, while weak demand in the downstream industries is also a factor. With the major steelmakers in China having increased their CRC ex-mill prices during two consecutive months, the market has not fully accepted the price adjustments and downstream buyers are reluctant to place orders. In addition, approaching the end of the current month, some traders are lowering their sales prices in order to bring in cash, and this is also a factor causing CRC prices to drop.
CRC inventory in the main Chinese cities has continued to increase, rising to 1,400,010 mt on August 20, up 15,630 mt week on week. The southern Chinese market saw the greatest increase in inventory. On the same date, CRC inventory in Shanghai totaled 471,410 mt.
Current supplies in the market are the low-priced supplies from June and July. As to the spot market, CRC prices are now expected to trend sideways for a while. September and October constitute the traditional peak season and so traders are optimistic but cautious about the future market.