Over the past week, CRC prices in the Chinese domestic market have moved up steadily, amid limited supplies and positive macroeconomic expectations for 2013.
In November this year, the total automotive vehicle output in China (including passenger cars, trucks and buses) amounted to 1,761,400 units, up 3.9 percent year on year and rising by 11 percent month on month, as announced by the China Association of Automobile Manufacturers (CAAM). In addition, in the given month China's automotive vehicle sales amounted to 1,791,000 units, indicating a month-on-month increase of 11.5 percent and up 8.2 percent compared to November last year.
In addition, traders are reluctant to sell CRC, expecting further price increases due to limited supplies in the market, as cold weather hindered shipments. Furthermore, rising raw material prices bolstered CRC prices.
However, the overall growth may slow down, as demand is becoming sluggish due to cold weather and liquidity becoming tight at the end of year.
As for the coming week, it is expected that CRC prices will fluctuate in a narrow range.