Over the past week, the Chinese cold rolled coil (CRC) market has fluctuated downward, while the transaction situation has been lukewarm. At the same time, in order to stimulate business, some traders have been giving discounts of RMB 10-20/mt ($1-3/mt) based on their offers. The average CRC prices in the main markets in China are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
1.0 mm x 1,250 mm x C |
SPCC |
5,527 |
-40 |
844 |
-6 |
|
CRS |
1.0 mm x 1,250 mm x 2,500 |
SPCC |
5,610 |
-13 |
856 |
-2 |
As of April 20, prices of ST12 1.0 mm × 1,250 mm × C CRC stand at RMB 5,500/mt ($840/mt), RMB 5,600/mt ($855/mt) and RMB 5,480/mt ($837/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 5,580/mt ($852/mt), RMB 5,700/mt ($870/mt) and RMB 5,550/mt ($847/mt) respectively in the Shanghai, Tianjin and Lecong markets. All the above prices include 17 percent VAT (US$1 = RMB 6.55).
On April 15, aggregate inventory of cold rolled coils in China's major cities was 1.52024 million mt, down 10,450 mt week on week. On the other hand, in the same one-week period cold rolled coil inventory in Shanghai increased by 6,450 mt to 533,090 mt.
Influenced by the decline in the steel futures market and the downward trend in the domestic hot rolled coil market, prices in China's cold rolled coil market have started to soften to a certain extent.
Currently, due to anticipations of better steel demand in the remainder of April and in May both in domestic and foreign markets, steel prices in China are likely to remain at relatively high levels. Nevertheless, market inventories of cold rolled coil in China are still high, while, furthermore, the reduced ex-works prices of cold rolled products from some large-sized steel mills have met with a tepid booking response from the downstream market.
In the short term, it appears difficult for the Chinese cold rolled coil market to move up. The market is expected to be characterized by minor fluctuations in the coming week.