During the past week, the Chinese cold rolled coil (CRC) market has continued to increase, though the actual transaction volume has not been great. Traders hold diverse opinions as to the likely trend of China's CRC market in the coming period. On January 19, the average CRC 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 × 1,250 mm ×C |
SPCC |
5,540 |
+43 |
842 |
+7 |
|
CRS |
1.0 mm × 1,250 mm × 2,500 mm |
SPCC |
5,597 |
+34 |
851 |
+5 |
As of January 19, prices of ST12 1.0 mm × 1,250 mm × C CRC stand at RMB 5,590/mt ($850/mt), RMB 5,480/mt ($833/mt) and RMB 5,550/mt ($843/mt) respectively in the Shanghai, Tianjin and Lecong markets. In addition, prices of ST12 1.0 mm × 1,250 mm × 2,500 mm cold rolled sheet (CRS) stand at RMB 5,590/mt ($850/mt), RMB 5,600/mt ($851/mt) and RMB 5,600/mt ($851/mt) respectively in the Shanghai, Tianjin and Lecong markets. All the above prices include 17 percent VAT (US$1 = RMB 6.58).
During the past week, the upward adjustments in domestic producers' ex-mill flat steel prices have provided support for further increases in China's CRC market. Traders have also continued to increase their CRC prices, but the general situation in the market as regards transaction activity has remained depressed. In the past week, CRC transactions in China were mainly between traders, with few CRC purchases made by end-users.
Traders hold diverse views on likely future trend of China's CRC market
As the Spring Festival approaches, traders hold diverse opinions as regards the likely future trend of the domestic CRC market in China. Although CRC demand is not good, many traders are optimistic about the future market considering steelmakers' price increases as well as the high cost of raw materials. On the other hand, other traders have indicated that, due to weather conditions and steel mills' overhaul activity, there has recently been some reduction in the volume of new CRC arrivals. These traders worry that in the near future a large volume of CRC materials could arrive in the market, posing a threat to the current high CRC prices if support from the demand side is lacking.
Many traders are expected to leave the domestic CRC market in China in the coming week due to the approach of the Spring Festival holiday, and so it is thought that CRC market prices will not change greatly in the week ahead. It is expected that Chinese CRC market prices will maintain their strong levels in the coming week.