During the past week, the Chinese cold rolled coil (CRC) market has generally remained stable, though price upticks have been seen in certain regional markets. 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 |
5,533 |
0 |
843 |
0 |
|
CRS |
1.0 mm x 1,250 mm x 2,500 mm |
SPCC |
5,600 |
+3 |
854 |
+0.4 |
As of April 6, prices of ST12 1.0 mm × 1,250 mm × C CRC stand at RMB 5,520/mt ($841/mt), RMB 5,550/mt ($846/mt) and RMB 5,530/mt ($843/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 5,550/mt ($846/mt), RMB 5,700/mt ($869/mt) and RMB 5,550/mt ($846/mt) respectively in the Shanghai, Tianjin and Lecong markets. All the above prices include 17 percent VAT (US$1 = RMB 6.56).
On April 1, aggregate cold rolled coil inventory in the main Chinese cities stood at 1.54099 million mt, down 12,320 mt week on week.
CRC market prices in China did not fluctuate much in the past week, while the transaction volume in the market was moderate. Transactions between traders were fewer than in the previous week, while more supplies have started to flow to end-users.
Many traders think that the cold rolled market in China may trend upward in April, based on four main factors: 1. High oil prices have pushed up prices of bulk commodities and the rising prices of raw materials will support finished steel prices; 2. The CRC supplies in the market mainly consist of high-priced materials delivered in March and so traders will be less inclined to lower their prices; 3. In early April, Benxi Iron and Steel, Handan Iron and Steel and other large steelmakers all started overhaul works or reduced production; 4. April is traditionally part of the high season for demand. Downstream users have limited inventories and so in the coming period their purchases may increase. However, the steel markets are still characterized by a tendency to fluctuate.
In addition, on April 5 the Chinese central bank raised the benchmark interest rates on savings and loans for domestic financial institutions by 0.25 percentage points, and the one-year RMB lending rate was increased to 6.31 percent, while the one-year RMB deposit rate was increased to 3.25 percent. This is the fourth time since October that the central bank has raised the benchmark interest rate.
It is thought that the Chinese CRC market may register an increase in the coming week.