During the past week, the Chinese cold rolled coil (CRC) market has continued its rising trend, showing a slight increase, though the actual transaction volume has been unsatisfactory.
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 |
5,563 |
+16 |
853 |
+2 |
|
CRS |
1.0 mm x 1,250 mm x 2,500 mm |
SPCC |
5,630 |
+20 |
863 |
+3 |
As of May 4, prices of ST12 1.0 mm × 1,250 mm × C CRC stand at RMB 5,520/mt ($847/mt), RMB 5,600/mt ($859/mt) and RMB 5,570/mt ($854/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 5,590/mt ($857/mt), RMB 5,700/mt ($874/mt) and RMB 5,600/mt ($859/mt) respectively in the Shanghai, Tianjin and Lecong markets. All the above prices include 17 percent VAT (US$1 = RMB 6.52).
After the Labor Day holiday (April 30-May 2), amid the upward price trend for construction steel and hot rolled coil, market prices of cold rolled products have also climbed up slightly, though the transaction situation has not been so good. Despite their optimism on the prospects for the market in the short term, traders still tend to be cautious.
On the inventory side, on April 29 aggregate inventory of cold rolled coils in China's main cities was 1,528,430 mt, up 8,460 mt week on week. On the same date, total inventory of cold rolled products in the Shanghai market amounted to 551,090 mt, increasing by 5,600 mt week on week.
According to the China Association of Automobile Manufacturers, in March this year China's auto output reached 1,827,000 units, up 5.3 percent year on year, while national auto sales amounted to 1,828,000 units, up 5.4 percent year on year. However, the year-on-year growth rates were down significantly as compared to the growth rates in March 2010, which is bad news for cold rolled product demand. In the meantime, the high inventory levels of cold rolled products will also restrict the upward trend of prices. Furthermore, due to the Chinese government's strict control of the real estate sector, demand for white goods will be negatively impacted.
In the short term, the lower end of cold rolled coil market prices may increase further. Currently, China's cold rolled coil market still faces a situation of high costs, weak transaction volumes and high inventory. It is thought that the Chinese cold rolled market will fluctuate within a narrow range in the coming week.