Over the past week (May 13-20), the Chinese cold rolled market has continued its uptrend of the previous week, with further price increases but slower sales activities observed compared to the week before. As prices keep climbing, end-users are showing a greater unwillingness to purchase at higher rates, while activity among traders is also down.
Product name |
Specification |
Category |
Average price(RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
1.0 mm x 1,250 x C |
SPCC |
4,270 |
+107 |
626 |
|
CRS |
1.0 mm x 1,250 x 2,500 |
SPCC |
4,367 |
+117 |
640 |
The uptrend seen in China's domestic cold rolled market during the past week has mainly been due to the strong rising movement recorded by hot rolled prices as well as due to market players' positive expectations as regards the future market. At present, most traders have gained some relief as regards liquidity and inventories. Some mills have recently raised their prices for cold rolled products and this has provided impetus for the market.
As of May 15, the cold rolled inventory in Shanghai was standing at 320,000 mt, down approximately 1,000 mt from the week before. On May 15, Liaoning-based Anshan Steel issued its new ex-mill price for June. Accordingly, the producer's cold rolled coil price was up RMB 350/mt ($51/mt), following which its ST12 1.0 cold rolled sheet is now priced at RMB 3,670/mt ($538/mt).
Meanwhile, under the influence of China's stimulus measures aimed at boosting domestic demand, ensuring economic growth and restructuring domestic industry, the production and sale figures of the main sectors have registered improvements. According to statistics, in the first quarter China's production and sales of goods such as refrigerators, televisions, mobile phones, washing machines, computers, water heaters and air-conditioner were all performing well. In April, Chinese automotive production totaled 1.1568 million units, with a sales volume of 1.153 million units, up 17.89 percent and 24.97 percent respectively year on year. When compared with March, the automotive production and sales volumes in April were up 5.61 percent and 3.91 percent respectively.
Currently, after the rapid continuous increases in the cold rolled market, upward momentum is now diminishing. As mills gradually recommission production, the market will probably come under greater pressure in the future. For now, some traders are still maintaining a cautious view as regards the future market. For next week, the cold rolled price in China's domestic market is unlikely to trend down continuously, but will more probably switch to a fluctuating trend.