During the week ending September 7, prices in the Chinese cold rolled coil (CRC) market have risen slightly despite weak demand. As of September 7, 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) |
1.0 mm x 1,250 mm x C |
SPCC |
5,487 |
+17 |
859 |
+3 |
|
CRS |
1.0 mm x 1,250 mm x 2,500 mm |
SPCC |
5,533 |
+10 |
866 |
+2 |
As of September 7, 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 ($861/mt), RMB 5,360/mt ($839/mt) and RMB 5,600/mt ($876/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 ($861/mt), RMB 5,450/mt ($853/mt) and RMB 5,650/mt ($884/mt). All the prices above include 17 percent VAT ($1 = RMB 6.39).
Overall CRC inventory in the Chinese market has slightly increased. As of September 2, the total CRC inventory in the domestic market came to 1.57 million mt, down 16,360 mt from the previous week. In the Shanghai market, the inventory of CRC products on the same date stood at 563,329 mt, regressing by just 400 mt week on week.
During the week in question, activity in the domestic CRC market remained sluggish. Traders are getting anxious about the current situation, while a few of them are reluctant to sell. On the one hand, the market demand remains slack market and traders' profits are on the low side. In this context, the mills have started to reduce their production gradually. Also, with the slowdown in domestic CR demand, some mills prefer to focus on the foreign markets.
With supply and demand balanced in the domestic market, and given the firm raw material markets and the expected stronger demand in coming weeks in late September and October, domestic cold rolled prices in China are expected to remain firm.