Chinese CRC market sees increase upon return from holiday

While February 9 is the first working day in China after the country's Spring Festival holiday, many traders in the main Chinese cold rolled coil (CRC) markets have not yet reopened for business. On February 9, the average CRC prices in the main markets in China are as follows:

As of February 9, prices of ST12 1.0 mm × 1,250 mm × C CRC stand at RMB 5,590/mt ($850/mt), RMB 5,550/mt ($843/mt) and RMB 5,620/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 5,620/mt ($854/mt), RMB 5,700/mt ($866/mt) and RMB 5,650/mt ($859/mt) respectively in the Shanghai, Tianjin and Lecong markets. All the above prices include 17 percent VAT (US$1 = RMB 6.58).

China's CRC market has made a positive return in terms of price trend after the holiday. In the three major markets, the Tianjin market registered the biggest increase, followed by the Lecong market. The Shanghai market registered the smallest increase. While prices have increased, actual transactions have so far been on the scarce side.

Chinese central bank raises interest rates

On February 8, the People's Bank of China (Chinese central bank) announced an increase of 0.25 percentage points in the key lending and deposit rates, effective as of February. Accordingly, the Chinese central bank has raised the one-year RMB lending rate from 5.81 percent to 6.06 percent, while it has also raised the one-year deposit rate from 2.75 percent to three percent. Traders say this policy is in line with expectations, adding that it will likely exert little influence on the upward price trend in the domestic CRC market.

Summing up, China's CRC market has started the post-holiday period with an uptrend, with traders pushing their prices up. The future trend of the market will depend on actual demand.