During the past week, Chinese cold rolled coil (CRC) market moved on a rising trend. However, traders have not been overly optimistic about the future. 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 |
5,567 |
+34 |
847 |
+5 |
|
CRS |
1.0 mm x 1,250 mm x 2,500 mm |
SPCC |
5,623 |
+23 |
856 |
+4 |
As of April 13, prices of ST12 1.0 mm × 1,250 mm × C CRC stand at RMB 5,520/mt ($840/mt), RMB 5,650/mt ($860/mt) and RMB 5,530/mt ($842/mt) respectively in the Shanghai, Tianjin and Lecong markets. In addition, prices of ST12 1.0 mm × 1,250 mm × 2,500 mm cold rolled sheet (CRS) stand at RMB 5,570/mt ($848/mt), RMB 5,750/mt ($875/mt) and RMB 5,550/mt ($845/mt) respectively in the Shanghai, Tianjin and Lecong markets. All the above prices include 17 percent VAT (US$1 = RMB 6.57).
On April 8, aggregate cold rolled coil inventory in the main Chinese cities was 1.53069 million mt, down 10,300 mt week on week. On the same date, CRC inventory in Shanghai was 526,640 mt, up 4,220 mt week on week. Generally, CRC inventory in the main markets in China remains high.
During the past week, influenced by rising HRC prices in China, domestic CRC prices also increased and the inquiry and transaction situation improved.
Still, many traders say that the situation is not as good as in the previous year, and so they prefer to wait and see.
Rrising raw material prices provide support for spot steel market prices in China. At the same time, in the early and middle part of every month, there is sufficient availability of funds. Due to high costs of supplies, distributors have been asking the steel mills to reduce their prices.
Baosteel has reduced its prices for CRC products, and this has caused market players to worry about downstream demand.
With the government increasing taxes on car sales, and also taking into account higher oil prices and the influence of the Japanese earthquake on automobile production, Chinese domestic auto sales fell strongly in Q1.
Demand from the household appliance sector has also dropped.
It is thought that the Chinese CRC market may decline in the short term.