During the week ending September 11, average CRC prices in the Chinese domestic market have edged up, with transaction activity in the overall market being improved, at medium levels. Average cold rolled product prices in the local Chinese market are presented in the following table.
|
Product name |
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
1.0 x 1,250 x C |
SPCC |
4,276 |
+16 |
604 |
+2 |
|
|
CRS |
1.0 x 1,250 x 2,500 |
SPCC |
4,363 |
+13 |
616 |
+2 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
The People’s Bank of China (PBC) announced on September 6 that it has decided to lower the required reserve ratio (RRR) for financial institutions by 0.5 percentage points on September 16, boosting market players’ sentiments in ferrous metal market. HRC futures prices at Shanghai Futures Exchange (SHFE) have risen from RMB 3,465/mt on September 4 to RMB 3,515/mt ($496/mt) on September 11, up by 1.4 percent.
The inventory level of CRC on market players’ side has been at comparatively low level, which will provide certain support to CRC prices. As it is approaching to the Mid-Autumn Day holiday (September 13-15), downstream users started to build up stock for CRC. It is expected that CRC prices in the Chinese domestic market will move up slightly in the coming week.
$1 = RMB 7.08