During the week ending September 21, prices in the Chinese cold rolled coil (CRC) market have registered further declines as compared to last week. As of September 21, the average cold rolled coil 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) |
1.0mm*1250*C |
SPCC |
5,457 |
-16 |
857 |
-3 |
|
CRS |
1.0mm*1250*2500 |
SPCC |
5,533 |
-17 |
869 |
-3 |
As of September 21, the prices of ST12 1.0 mm x 1,250 mm x C cold rolled coil in the Shanghai, Tianjin and Lecong markets are respectively at RMB 5,500/mt ($863/mt), RMB 5,300/mt ($832/mt) and RMB 5,570/mt ($874/mt). Meanwhile, the sales prices of ST12 1.0 mm x 1,250 mm x 2,500 mm cold rolled coil in these markets are respectively at RMB 5,550/mt ($871/mt), RMB 5,400/mt ($848/mt) and RMB 5,650/mt ($887/mt). All the prices above include 17 percent VAT ($1 = RMB 6.37).
In the past week, Chinese CRC market has witnessed a gradual weakening. As the European debt crisis is becoming more serious dragging the international financial market to uncertainty, the steel future market has remained sluggish on the whole. Accordingly, CRC spot prices have declined. The overcapacity in the Chinese steel production exerts pressure on the Chinese CRC market, while the strength of the iron ore market supports market prices.
Overall, currently the Chinese CRC market remains sluggish, as end-user demand continues to be weak and transactions are scarce, despite lower market prices. Market players believe that recent price declines in the CRC market are mainly caused by the poor confidence in the market. Given the producers' ex-works prices remaining firm, it is thought that the market prices would not decrease sharply in a short term.
It is anticipated that the Chinese CRC market will continue its downward trend next week.