The Chinese cold rolled coil (CRC) market has continued to fluctuate in an upward direction in the past week, with rising raw material prices pushing costs higher. In addition, steel mills have increased their ex-mill prices. The average CRC prices in the main markets in China are as follow:
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 |
5,383 |
+36 |
810 |
+5 |
|
CRS |
1.0 mm × 1,250 mm × 2,500 mm |
SPCC |
5,463 |
+40 |
822 |
+6 |
On December 22, prices of ST12 1.0 mm × 1,250 mm × C CRC stand at RMB 5,380/mt ($809/mt), RMB 5,350/mt ($805/mt) and RMB 5,420/mt ($815/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 5,460/mt ($821/mt), RMB 5,450/mt ($820/mt) and RMB 5,480/mt ($824/mt) respectively in the Shanghai, Tianjin and Lecong markets. All the above prices include 17 percent VAT (US$1 = RMB 6.65).
During the past week, the transaction volume in the domestic CRC market was good. However, the volume of new deliveries to the market was limited, and so market inventory registered an obvious drop. Traders hold diverse views on the prospects for the future, with some traders maintaining a wait-and-see policy, while other traders are more actively involved in the market. At present, due to high costs and weak supplies, there is strong support for high prices in the market.
On December 17, 2010, aggregate CRC inventory in the main Chinese cities was 1.38376 million mt, down 17,480 mt week on week. Eastern China registered the biggest decrease in inventory. On December 17, inventory in Shanghai was 494,260 mt, down 2,580 mt week on week.
Generally speaking, the Chinese CRC market is expected to continue to fluctuate upward slightly in the coming week.